IRRV Alert - week ending 8th May 2020
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COVID-19: Bounce Back Loans (5 May 2020)
COVID-19: Bounce Back Loans
5 May 2020
The new Bounce Back Loans scheme will help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
The Bounce Back Loan Scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year.
Details as follows:
- up to £50,000 loan – loans will be from £2,000 up to 25% of a business’ turnover or £50,000, whichever is lower
- 100% guarantee – the scheme provides the lender with a government-backed, full guarantee (100%) against the outstanding facility balance, both capital and interest
- interest rate – the UK Government has set the interest rate for this facility at 2.5% per annum, meaning businesses will all benefit from the same, low rate of interest
- interest paid by the UK Government for 12 months – the UK government will make a Business Interruption Payment to the lenders to cover the first 12 months of interest payable, so businesses will benefit from no upfront costs
Firms will be able to access these loans through a network of accredited lenders.
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
To apply for a Bounce Back Loan please visit the GOV.UK website.
The full rules of the scheme and guidance is available on the British Business Bank website.
Please visit the Business Wales Covid-19 Support for Business page for information for your business on dealing with the Coronavirus outbreak.