The Government has announced the launch of a new scheme to support SME’s during the Coronavirus pandemic. The new scheme named the ‘Bounce Back Loan‘ will enable SME’s affected by Covid-19 to apply for loans from £2,000 to £50,000 and access the money within days. The scheme is set to launch on the 4 May 2020.
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 6 years, and no repayments will be due during the first 12 months. The Government will work with lenders to agree a low rate of interest for the remaining period of the loan.
The Government has also put together a simplified application process, which consists of a 2-page self-certification form.
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
If you’re already claiming from the CBILS
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS). However, if you’ve already received a loan of up to £50,000 under CBILS you will be able to transfer the sum over to the ‘Bounce Back Loan’ scheme; you can arrange this with your lender up until 4 November 2020.