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Bounce Back Loans

28 April 2020

COVID-19

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Yesterday the government announced further support for SME’s across the country with the introduction of ‘Bounce Back Loans’. What we know so far:

Yesterday the government announced further support for SME’s across the country with the introduction of ‘Bounce Back Loans’. What we know so far:

  • The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000. 
  • The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. 
  • Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.
  • The scheme will be delivered through a network of accredited lenders. 

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 

You also cannot apply if you are already claiming under the Coronavirus Business Interruption Loan Scheme but 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. 

The scheme is due to launch on May the 4th.

If you would like to discuss your specific circumstances in relation to any of the above, please get in touch with your usual contact within James Cowper Kreston or click here and fill out our contact form.