Bounce Back Loans
The Chancellor has announced a simplified loan arrangement for smaller businesses, known as ‘Bounce Back’ loans.
- Amounts available between £2,000 – £50,000
- Limited to no more than 25% of the business turnover
- Interest free for 12 months
- Fully guaranteed by the Government, therefore no excuse for the bank to place onerous constraints
- Loan term up to 6 years, with no repayments due during the first 12 months
- The Government has stated they will work with the lenders to agree a low rate of interest for the remaining period
- Loans to be provided by ‘network’ of accredited lenders
Eligible businesses are;
- Those based in the UK
- Who have been negatively affected by Coronavirus
- Who were not in difficulty at 31st December 2019
THE SCHEME IS TO BE LAUNCHED ON 4th MAY 2020. We will see then how readily available funds will be.
Link to Government guidance below.
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
