Updated 4th May 2020
Chancellor Rishi Sunak has announced today (27th April) an additional loan scheme for small businesses affected by Coronavirus, the Bounce Back Loan Scheme (BBLS). This is in response to ongoing criticism of the time being taken in approvals under the Coronavirus Business Interruption Loan Scheme. (CBILS).
The key factors that you will need to prove are that you were operating a viable business prior to the pandemic, and that you’ve been negatively affected by Coronavirus.
As yet, there is limited information available on the scheme, other than the following:
- Small firms can gain access to 100% taxpayer-backed loans.
- Loans can be from £2,000 up to £50,000.
- Payments should be received ‘within days of applying’.
- The application process involved filling in a two-page self-certification form online. Rishi Sunak described the application process as ‘no forward looking tests of business viability, no complex eligibility criteria, just a simple, quick, standard for for Businesses to fill in’.
- There will be no capital or interest payments due within the first 12 months.
- Maximum 25% of turnover.
- Maximum term is 6 years.
- There will be a network of accredited lenders.
- Small companies, sole traders and partnerships can apply
- If you have a CBILS loan application underway, you cannot apply for an additional Bounce Back loan, but you can convert a CBILS loan to a Bounce Back loan until 4th November 2020.
- Your business cannot have been ‘an undertaking in difficulty’ at 31st December 2019.
More details will follow is due course, with the scheme launching on Monday 4th May 2020.
We will of course keep you up to date as details are released. Sign up for our updates below to receive details as soon as they become available.
Update 28th April – the Gov.uk announcement for the scheme can be seen here.
Update 4th May – the British Business Bank information is here.