The Government has announced a new 100% Government backed loan scheme for small businesses.
 
Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders, the Chancellor announced yesterday. Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the Coronavirus pandemic.
 

  • Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days.
  • Loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form.
  • Loan terms will be up to 6 years.
  • No repayments will be due during the first 12 months. 

 The scheme will launch for applications on Monday 4 May. Businesses will be able to access these loans through a network of accredited lenders.
 
The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.
 
Eligibility:
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

 
The following businesses are not eligible to apply:
 

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  •  further-education establishments if they are grant-funded
  • state-funded primary and secondary schools
  • if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).