CLOSED – RECOVER LOAN SCHEME NOW OPEN
Application deadlines for Government Loan Schemes are extended until the end of March 2021.
Bounce Back Loans can be extended from 6 to 10 years. Interest-only periods of up to 6 months and payment holidays will also be available.
Coronavirus Bounce Back Loan – Open 4th May 2020
The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000
- The government will guarantee 100% of the loan
- No fees or interest to pay for the first 12 months.
- Loan terms will be up to 6 years.
- No repayments will be due during the first 12 months.
- After year 1 – interest rate for this loan at 2.5% per annum and the repayment term is fixed at six years.
- Early repayment is permitted at any stage, without early repayment fees.
The government will work with lenders to agree a low rate 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
- business was trading on/before 01/03/2020
The following businesses are not eligible to apply:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- further-education establishments, if they are grant-funded
- state-funded primary and secondary schools
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 4 November 2020.
How do I apply?
The Scheme will be available through the British Business Bank’s accredited lenders. A list of lenders is available here.
Businesses will be required to fill in a short online application form and self-declare that they are eligible for the Scheme.
- Approach own bank first (apply on their website)
- If rejected, you can approach other accredited providers
What checks will I be subject to?
- Required to self-declare they meet the eligibility criteria for the Scheme.
- Eligible companies will be subject to standard customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks.
What happens if I find I’m struggling to repay the loan?
- Talk to the lender if you are experiencing financial difficulties
- There will be standard procedures put in place
- No personal guarentee is required
For sole traders or small partnerships, who often risk their personal assets when borrowing, the terms of the Bounce Back Loan Scheme means no recovery action can be taken over a principal private residence or a primary personal vehicle.
For FAQs on the loan, click here
