Chancellor Rishi Sunak has announced that small businesses will be able to access loans of up to £50,000 through the Bounce Back Loan Scheme which will be 100% government-backed. This announcement comes after many small businesses said they were either being rejected for the Coronavirus Business Interruption Loan Scheme or that credit checks by banks were taking too long. Therefore, the government has decided to back the loan with a 100% guarantee.
How to apply?
The “Bounce Back Loan” scheme is aimed at small and micro businesses which many believe are the backbone of the British economy. This scheme has been designed so businesses can access money quickly. Businesses will be able to apply for this scheme online through a short application form which will launch on Monday 4 May. If your application is successful, the money will be in your business account within a few days. No credit check is needed as this is a 100% government-backed loan.
Terms of the loan
- No fees or interest in the first 12 months
- No capital repayments due in the first 12 months
- Loan term of up to 6 years
- Businesses can borrow anything between £2,000 and £50,000
You can apply if your business:
- Is based in the UK
- Has been negatively affected by the coronavirus
- Was not an ‘undertaking in difficulty’ on 31 December 2019
Businesses that cannot apply
- banks, insurers, and reinsurers (but not insurance brokers)
- public sector bodies
- state-funded primary and secondary schools
- You cannot apply if you are already claiming on the Coronavirus Business Interruption Loan Scheme
It is important to note that if you received a loan through the Coronavirus Business Interruption Scheme of up to £50,000, you can arrange to switch it to a Bounce Back Loan scheme with your lender up until 4 November 2020.
Please visit the Government guidance website to keep up to date with announcements.
How can we help
At Hawsons we have a dedicated team of accountants at our offices in Sheffield, Doncaster, and Northampton. We understand that it is currently a difficult time for businesses and individuals. Our experts can financially advise you and your business through these difficult times.
Book your free initial meeting here.
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Senior Partner, Sheffield
0114 266 7141