The introduction of Bounce Back Loans follows the previously-announced Coronavirus Business Interruption Loan Scheme (CBILS), and are designed to provide businesses with “quick and easy” access to sums up to £50,000.
About Bounce Back Loans:
Businesses of all sizes will be able to apply for a 100% government-backed loan of up to £50,000, with an affordable flat rate of 2.5% interest.
Thousands of small businesses, including hairdressers, coffee shops and florists, are able to benefit from these loans, and those who have an existing loan of less than £50,000 under the CBILS will be able to switch their loan to the new Bounce Back Loan scheme.
When will the loans be available?
These quick and easily-accessible Bounce Back Loans are available can be applied for now, and the cash ought to be available to businesses in only a matter of days.
The main conditions for accessing the Bounce Back Loans are that your business:
1) Has to have been trading before March 1st 2020
2) Has not been in financial difficulty (the loans are not designed as bailouts)
What does the government say?
Chancellor Rishi Sunak says:
“Small businesses will play a key role in creating jobs and securing economic growth as we recover from the Coronavirus pandemic. The Bounce Back Loan Scheme will ensure businesses get the finance they need - helping them bounce back and protect jobs”
How do I apply for a Bounce Back Loan?
You should apply for a bounce back loan via the bank with which you have an existing business account.
You will be asked to fill in an online form of just 7 questions which asks about turnover, tax details, bank account and how COVID-19 has affected your business. The treasury expects to pay out within days.