“Bounce back” Loans are available from Monday 4th May
As you may be aware, the Government has announced a new 100% Government backed loan scheme for small businesses. The Chancellor announced that small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.
Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
• Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days. We understand that there will be a cap on the loan of 25% of turnover, however this detail has not yet been finalised.
• Loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form.
• Loan terms will be up to 6 years.
• No repayments will be due during the first 12 months.
The scheme will launch for applications on Monday 4 May. Businesses will be able to access these loans through a network of accredited lenders.
The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.
You can apply for a loan if your business:
• is based in the UK
• has been negatively affected by coronavirus
• was not an ‘undertaking in difficulty’ on 31 December 2019.
Who cannot apply
The following businesses are not eligible to apply:
• banks, insurers and reinsurers (but not insurance brokers)
• public-sector bodies
• state-funded primary and secondary schools
• if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
More information about the scheme will be published shortly by the government, and as soon as we have this we will share it with you. In the meantime, you can check https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan for updates.
If you think that this woud be of real help to your business at this current time, but want to talk it through first then feel free to contact me, Ian, Sarah or any of the team here at Styles and Co for help and guidance.
We are here to support you.
Take care and stay safe.