It was announced yesterday by the UK Chancellor that businesses will be able to receive Business Bounce Back Loans from the 4th May 2020 to help them get through the Coronavirus outbreak and its affects on businesses throughout the country.
The Business Bounce Back Loan Scheme is a loan that the government is organising with a selection of lenders to help small to medium sized UK businesses. The loans will be guaranteed 100% by the government, will be free from interest and fees for 12 months, and can be with a term of up to 6 months.This scheme will be "fast-track", with the loan forms being standardised for all lenders within the scheme, which will be short and easy to fill in, according to the chancellor. The loan amounts are from £2,000 to £50,000, with the cash being accessible "within days".
According to the chancellor, this scheme is for small to medium sized businesses who have been affected by the coronavirus outbreak. The eligibility requirements are:
Banks, insurers, public-sector bodies, education providers if they are grant funded, and state-funded schools cannot apply for the Business Bounce Back Loan.
A point to note is that if you are already claiming funding through the Coronavirus Business Interruption Loan Scheme (CBILS) you are not able to apply for the Business Bounce Back Loan Scheme. However, if you have already received a loan of up to £50,000 through CBILS you can request to transfer it to the Bounce Back Loan Scheme with your lender, as long as you do this before the 4th November 2020.As the scheme will be launched on 4th May 2020, we recommend you hold off from requesting to change the funding from CBILS to the Bounce Back Loan Scheme with your lender as you may want to look further into the options and if you qualify once the details have been finalised.
