The Chancellor announced yesterday, Monday 27 April, that a 100% Government backed loan scheme will be available for smaller businesses to access across the UK within a week.
The new Bounce Back Loan scheme will allow eligible businesses to borrow from £2,000 up to £50,000, and will be interest free for the first 12 months with no repayments due within this first 1 year period for a loan term of up to 6 years.
The scheme, which opens for applications on Monday 4 May, is designed to help smaller businesses which are having difficulties accessing others options available, such as the Coronavirus Business Interruption Loan Scheme, and give small businesses a much needed cash injection.
The Government will be working with lenders to ensure loans are delivered as quickly as possible through a network of accredited lenders, with a low standardised level of interest being agreed for the remainder of the loan period after year 1.
You can apply for this 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
Businesses cannot apply if they are already claiming and have received funds under the Coronavirus Business Interruption Loan Scheme (CBILS). But they are able to transfer it into the Bounce Back Loan scheme, if preferred by arrangement with their lender until 4 November 2020.
If you have any questions or would like to discuss the impact of Coronavirus on your business, please get in touch with your usual Campbell Dallas contact.
The information in this update should not be regarded as financial advice. This is based on our understanding on 28 April 2020. Laws and tax rules may change in the future.