Summary
The chancellor has announced a new loan scheme for small and medium businesses, aimed at those businesses who have so far struggled to access credit. The loans are designed to be accessed quickly and without the need for forecasts.
Eligibility
- UK based Business
- Negatively affected by coronavirus
- Was not an ‘undertaking in difficulty’ on 31 December 2019.
Features
- Loan between £2,000 and £50,000
- Capped at 25% of annual turnover
- 100% Government Guaranteed.
- Government will pay interest for first 12 months
- No Repayment requirement in first 12 months
- Terms between 2 and 6 years
- Online application form available from 4 May.
- No cashflow forecasts required
- Funds available within days
- Not available in conjunction with CBILS (Coronavirus Business Interruption Loan Scheme) but if you have a CIBILS loan of up to £50,000 you can transfer to the Bounce Back Loan Scheme before 4 November 2020
Further information
The scheme launches on 4 May and will be accessible from the.gov.uk website. Links to the guidance issued so far:
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
https://www.gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans
McCleary & Company Ltd. Will be running a webinar on 7th May on the Bounce Back Loan Scheme and the Coronavirus Business Interruption Loan Scheme. Further details, including how to register for the event will be published shortly.
