Government Announces: “Bounce Back” Loans

Government Announces: "Bounce Back" Loans

Government Announces: “Bounce Back” Loans

The Government has announced a new 100% Bounce Back (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 on 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 a 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).

More information about the scheme will be published shortly.

Further details see:- Gov.uk

For more information, Book a Free Consultation

Need Accountancy Support?

For information on bespoke training, or if you have any other questions for Makesworth Accountant, please fill in your details below



    By submitting the form, you agree with the storage and handling of your data to contact you to arrange a free consultation with us and to receive latest updates by Makesworth Accountants in accordance with our Privacy Policy

    Proud to be featured in

    Happy with our services? Please leave us a Google Review. Click here