On the 04 May 2020 the Government launched the new Bounce Back Loan Scheme. This scheme is a Government initiative and is designed to help businesses during the Coronavirus outbreak. The main principles of this scheme are;
- Cash arriving quickly
- Businesses are able to borrow between £2,000 – £50,000
- The form is said to be simple and short with 100% of the loan being backed by Government lenders
- Agreement on a flat rate of 2.5% interest
The Coronavirus Business Interruption Loan was an earlier Government initiative, if you took a loan of £50,000 or less you can look to switch to the new Bounce Back Loan Scheme if you wish.
We have taken a direct comment from Rishi Sunak, The Chancellor of the Exchequer;
‘Small businesses will play a key role creating jobs and securing economic growth as we recover from the Coronavirus pandemic.
The Bounce Back loan scheme will make sure they get the finance they need – helping them bounce back and protect jobs.’*
On launch day it was reported that large UK banks received more than 45,000 applications.
If you are interested in applying for this scheme you can do so through the following link. Further information about eligibility can be found here.
References
*https://www.gov.uk/government/news/new-bounce-back-loans-to-launch-today
