Have you been waiting for the Bounce Back Loan to be made available? Good news! Businesses are now able to apply for the Bounce Back Loan. Released on Monday 4th May, this is the government-guaranteed loan scheme for businesses affected by the economic impact of the Coronavirus lockdown. However, there are a few crucial things you should know before you jump in.
Bounce Back Loan: Basic Terms:
- It is brand new and offers loans from £2K to £50K to a maximum of 25% of turnover.
- You can repay the loan over 6 years.
- You don’t need to repay anything in the first 12 months.
- The first 12 months are interest-free too.
- Government is backing the loans 100% so that it is guaranteed for lenders.
- You do not need to offer your personal security to lenders.
There are a few more details
- You must use the loan for business purposes – don’t go and buy a new car!
- The business must be based in the UK.
- COVID-19 must have affected your business.
- The loan will be subject to a 2.5% interest rate.
- There are no set up or early settlement fees.
- You are responsible for the full repayment of the loan.
- Your business must not have been in difficulty before the Coronavirus crisis occurred. You must not have negative reserves or a negative balance sheet that exceeds 50% of the share capital issued by the end of 2019.
- You can’t apply for the Bounce Back loan if you have already received a loan under CBILS (Coronavirus Business Interruption Loan Scheme), but you can transfer your CBILS loan into the Bounce Back if it is under £50,000.
How do I apply?
You can find more information HERE on the government’s .gov website.
The list of the different lenders offering the loan for UK businesses can be found here:
You can apply via online banking with your regular bank if they are one of the accredited lenders.