Covid-19 : Business Support 27.04.20 – Update 26
New: Bounce Back Loan
This afternoon the Chancellor announced a new micro loan scheme, with the aim of providing a simple, quick, easy solution for those in need of smaller loans. The new “Bounce Back Loans” will offer:
- loans of up to £50,000 that will be capped at 25% of the businesses turnover;
- interest for the first 12 months will be covered by the government;
- there will be no fees;
- the government will provide lenders will a 100% guarantee;
- the government will work with lenders to agree a low rate of interest for the remaining period of the loan;
- loan terms will be up to 6 years; and
- no repayments will be due during the first 12 month.
The Chancellor has stated that most loans will arrive within 24 hours of approval and that the application process will be a simple, quick, standard form for businesses to fill in with no:
- forward-looking tests of business viability; or
- complex eligibility criteria.
The scheme will be delivered through a network of accredited lenders, and you can apply for a loan if your business:
- is based in the UK;
- has been negatively affected by coronavirus; and
- was not an ‘undertaking in difficulty’ on 31st December 2019.
You can’t apply if you have already received a loan via CBILS, however if you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4th November 2020.
The loans will be available from next Monday (4th May), and we await further details of the application process.
Coronavirus Business Interruption Loan Scheme
Also note that the British Business Bank has approved a number of new lenders under the Coronavirus Business Interruption Loan Scheme, including AIB. The full list of lenders are available here Click here
We hope you find this information useful and we will continue to keep you updated on any further developments. To access out latest updates and other guidance refer to our Covid-19 Hub: Click here