More Support for Small Businesses
Posted on 30th April 2020 at 10:12
At the beginning of the week Rishi Sunak annouced the introduction of the 'Bounce Back Loan' for small businesses who are not eligible or are struggling to get the Business Interruption Loan.
What is the Bounce Back Loan?
The Bounce Back loan is designed for small businesses who need to borrow between £2000 and £50,000 but are strugglingto get, or are ineligible for, the Business Interruption Loan.
The loan will be 100% guaranteed by the government and no fees, interest or payments will be paid for 12 months.
Government are working with lenders to agree a low interest rate for the remaining term.
The amount of borrowing is capped at 25% of turnover up to a maximum of £50,000.
Applications will be avaliable from 9am on Monday 4th May.
These loans should be avaliable within a few days of applications being submitted.
The loan term will be up to 6 years.
Business Interruption loans of less than £50,000 can be transfered to the Bounce Back scheme before 4th November 2020.
Who is eligible?
Businesses who have not received the Business Interruption Loan
Small and Medium sided businesses
A UK based business
Businesses who have been negatively affected by coronavvirus
Businesses who were not already in financial difficulty as at 31st December 2019.
How to apply
The scheme will launch on 4th May 2020. More infomation will be published shortly
More information is avaliable on the Goverment website.
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