• This Scheme was made available on 4th May 2020.
• It offers loans between £2,000 and £50,000.
• It is 100% government backed, i.e. there are no risks to private lenders.
• The loan term will be up to six years.
• Loans would be interest and fee free for the first 12 months.
• Applications are made through an on-line form.
• If you have been successful obtaining a loan through the Coronavirus Business Interruption Loan Scheme (CBILS), you can transfer this to a Bounce Back Loan instead.
• Decisions made by the lender are designed to be very quick.
• Funds can be transferred as early as the next working day.
• You will need to demonstrate that your business wasn’t in financial difficulty at 31st December 2019.
This scheme was announced in response to the difficulties with the CBILS scheme, with a lengthy time required in order to go through the application process. This appears to be a much better system for the small loans which the majority of small businesses require.
Much like the CBILS scheme, it would be beneficial to have your 2019 statutory accounts filed with Companies House, if applicable.
Please contact us if you would like any assistance with the application.
USEFUL LINKS
HMRC:
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
British Business Bank (where you apply):
