Bounce Back Loan Scheme - £50,000Back to News
Sunak assured the House of Commons that from Monday 4 May businesses will only need to apply through a short, standardised online application and will get the loans within 24 hours of approval.
How does it work
The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000. Businesses can apply for loans up to 25% of their turnover.
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.
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 can't claim
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
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 to apply
The Bounce Back Loan Scheme will launch on 4 May 2020.
If you would like any further information on this scheme, please get in touch with your contact at Lancaster Haskins.