Yesterday, Rishi Sunak announced a new scheme called “Bounce Back Loans” to help small businesses affected by the coronavirus pandemic.
This was in response to criticism of the robustness of the underwriting and the slow application process for the Coronavirus Business Interruption Loan Scheme. These new loans may be suitable for your own business or for some of your clients. Please feel free to share this information as you see appropriate.
Bounce Back Loans will be 100% underwritten by the Government and the key points about their availability are as follows:
- The scheme will launch for applications at 09.00 on Monday 4 May
- Firms will be able to access these loans through a network of accredited lenders (details to be confirmed)
- The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standard level of interest for the remaining period of the loan
- For most firms, loans should arrive within 24 hours of approval
- Businesses will be able to borrow £2,000 up to £50,000 or 25% of turnover
- Loans will be interest-free for the first 12 months
- Businesses can apply online through a short and simple form (expected to be no more than 2 pages). There will be no forward-looking tests of business viability or complex eligibility criteria.