What is it?
The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.
Who is it for?
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)
state-funded primary and secondary schools
Please note: you cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
How does it work?
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. 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 scheme will be delivered through a network of accredited lenders.
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.
What should I do next?
Applications for Bounce Back Loans are now open. You can apply for this scheme here.
The full rules of the scheme and guidance on how to apply is available on the British Business Bank website.
If you have specific questions, please contact us.