COVID-19 Advice for business - Business Bounce Back Loan

Rishi Sunak has announced a new business loan scheme aimed at helping small businesses during the Coronavirus pandemic. The ‘Bounce-back Loans’ scheme will be launched on Monday 4 May at 9am and will run alongside the existing Coronavirus Business Loans Interruption Scheme (CBILS) and the Coronavirus Large Business Loan Scheme managed by the British Business Bank as well as the cash grants available for small businesses and those within the retail, hospitality and leisure sectors.

Small businesses will be able to apply for loans between £2,000 and £50,000 with a 100% Government guarantee for lenders. Businesses that take a Bounce-back Loan will not need to make any payments during the first 12 months and this period will also be interest free.

The key details are:

• The scheme will go live from Monday 4th May 2020 and cash will be released within days for eligible businesses
• Businesses can borrow between £2,000 and £50,000
• The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months
• Loan terms will be up to six years
• You can’t apply if you’ve already had a coronavirus business interruption loan but you can port your existing loan of up to £50,000 across
• The Bounce Back Loans scheme is capped at 25 per cent of turnover and promises a streamlined application process
• The Government will work with lenders to agree a low rate of interest for the remaining period of the loan
• The scheme will be delivered through a network of accredited lenders