4th May 2020A guide to the Coronavirus ‘bounce back’ small loan scheme
Originally announced by the Chancellor on 27 April, the Bounce Back Loan Scheme (BBLS) opened for applications on 4th May. This microloan is to help small and medium sized businesses struggling to obtain other sources of Government backed funding. The scheme will be delivered by lenders accredited by the British Business Bank and will provide loans from £2,000 up to 25% of the business’ annual turnover with a maximum loan of £50,000.
- UK based business in any sector
- Negatively affected by Coronavirus
- Not considered to be an “undertaking in difficulty” on 31 December 2019
Key aspects of the scheme
- Applications will be via a simple standardised online form submitted directly to the bank.
- The scheme will launch on Monday 4th May for applications.
- The scheme will be made available through a network of accredited lenders.
- Lenders will have a 100% Government backed guarantee for the loan.
- The Government will pay interest and fees for the first 12 months.
- The interest rate will be Government-set at 2.5% a year.
- No capital repayments within the first 12 months.
- Loan terms will be up to 6 years.
How much can a company borrow?
- Small businesses will be able to borrow between £2,000 and £50,000.
- A loan of 25% of annual turnover will be made available up to the maximum amount of £50,000.
Conversion from Approved CBIL
- If you already have an approved loan of up to £50,000 under CBILS, then this can be transferred to a Bounce Back Loan until 4 November 2020.
If you have any questions at all on the above guidance please contact Simon Michaels, CEO of HW Fisher Business Solutions. If you are applying for the loan, Simon can also help prepare management accounts and cash flow forecasts to assist in the application process.
4 May 2020
The information contained in this guidance has been obtained from public sources and every attempt has been made to ensure its accuracy at the date of publication. In this ever changing environment, this information is subject to change and we will not accept liability for losses arising from changes in the law or the interpretation thereof.