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GOVERNMENT ANNOUNCES: “BOUNCE BACK” LOANS

 

The Government has announced a new 100% Government backed loan scheme for small businesses.

Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.

Bounce Back Loans scheme, which will provide loans of up to £50,000(or 25% of turnover if lower) would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.

 

  •  Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days.
  • Loans will be interest free for the first 12 months, and businesses can apply online through a short and simple form
  • Loan terms will be up to 10 years.
  • No repayments will be due during the first 12 months. 

 

Businesses will be able to access these loans through a network of accredited lenders but the quickest way is to approach their own banks via their website.

 

The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.

 

Eligibility:

You can apply for a loan if your business:

  • is based in the UK
  •  has been negatively affected by coronavirus
  • was not an ‘undertaking in difficulty’ on 31 December 2019

 

The following businesses are not eligible to apply:

 

  • banks, insurers and reinsurers (but not insurance brokers)
  •  public-sector bodies
  •  further-education establishments if they are grant-funded
  • state-funded primary and secondary schools
  • if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS)

 

 

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