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  • Writer's pictureBharat @ BdH

Government Bounce Back Loans: finally some good news for small businesses

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, the Chancellor announced yesterday.

Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the Coronavirus pandemic.

The details

  • 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 6 years

  • No repayments will be due during the first 12 months

When does the scheme launch?

The scheme will launch for applications on Monday 4 May. Businesses will be able to access these loans through a network of accredited lenders.

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:

Am I eligible?

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

More information about the scheme will be published shortly.


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