The Bounce Back Loan scheme was announced by HM Treasury on 27 April.
This new scheme, which will open for applications from 4 May 2020, has been designed to unlock cash flow problems for the smallest businesses and get liquidity funds out to those in need quickly.
Full details about eligibility are still to be announced but the loans of between £2,000 and £50,000 will be available, 100% backed by the Government and with no fees or interest to be paid for 12 months and repayments will not be due for the first 12 months from the loan being taken out. Loans can be for up to 6 years in term length.
To be eligible the business needs to be based in the UK, have been negatively impacted by covid-19 and been viable before the pandemic (defined as not being an ‘Undertaking in Difficulty’ on 31 December 2019).
Some organisations are excluded from the scheme, such as public bodies including schools and banking and insurance companies.
If your organisation has applied for and received a Coronavirus Business Interruption Loan Scheme (‘CBILS’) loan these can be transferred into the Bounce Back Loan Scheme once it opens (4 May) until 4 November 2020.
The government guidance page is: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan.
Business West welcomes this new loan scheme to support the vital smaller enterprises in our region and nationwide and hopes that it supplies much needed loan finance to businesses to ensure the impact of the pandemic is minimised and our region can drive economic recovery once the pandemic is over.
For queries please contact the team via the webform at: https://www.businesswest.co.uk/campaigns/trading-through-coronavirus/ask...
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