The government announced last month that there was extra help available for small businesses in the form of a bounce back loan.
The scheme allows small and medium sized businesses to borrow between £2,000 and up to 25% of their turnover (subject to a maximum of £50,000).
The government guarantees 100% of the loan and there will be no interest accrued or repayments required in the first 12 months. After 12 months the interest rate will be 2.5% per annum. The loan will be for 6 years and can be repaid early without penalty.
In order to be eligible your business needs to:
- Be based in the UK
- Be established before 1 March 2020
- Have been adversely affected by the Coronavirus
You cannot claim funding if you’re already claiming under the Coronavirus Interruption Loan Scheme, Coronavirus Large Business Interruption Loan Scheme or the COVID-19 Corporate Finance Facility.
There are 11 lenders who are offering this facility. It looks like a pretty good scheme to help your business if the current climate is affecting you. I am also led to believe that the application process isn’t onerous, and there is no requirement for personal guarantees.
For more details, please see this link.