Bounce Back Loans
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 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. Additionally, the loan is restricted to 25% of the business’s turnover.
The scheme will be delivered through a network of accredited lenders.
There is an intention that the application will be a simple 2 page form and that loans will be made within two days of application. To be eligible, businesses must not have been ‘undertakings in difficulty’ on 31 December 2019. We await further clarification on both these points.
The scheme will be launched on Monday 4 May
Government Website Link: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan