The Government has now announced the launch of a new loan scheme to help small and medium-sized businesses affected by Covid-19.
What is the Bounce Back Loan Scheme?
The scheme will be launched on Monday May 4 2020 and will allow SMEs to borrow between £2,000 and £50,000.
The announcement comes following reports that the application process for the £330 billion coronavirus business interruption loan scheme is complicated and is taking too long for payments to reach firms. Banks have also been requesting personal guarantees (such as homes) for small loans.
The ‘bounce back’ loan scheme will be 100% guaranteed by the government and promises to be simpler, quicker and an easier solution for the millions of small businesses affected by coronavirus.
Mr Sunak said that the loans would be available from 9 am next Monday and that payments would be made within 24 hours of approval, with "no complex eligibility criteria".
Who is eligible?
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
You will not be able to apply if you are already claiming under the Coronavirus Business Interruption Scheme (CBILS). However, 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 at 9am.
More information about the scheme will be published shortly and we will keep you up to date.