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Coronavirus Government Support – Bounce Back Loan Scheme

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.