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Coronavirus Bounce Back Loans

There have been a number of funding initiatives set up by the UK and Welsh Governments since the Coronavirus lockdown came into effect. The latest of these, the Coronavirus Bounce Back Loan launched today (May 4th). This scheme covers;

  • small businesses will be able to apply for quick and easy-to-access loans from today
  • businesses will be able to borrow between £2,000 and £50,000 with the cash arriving within days
  • loans will be 100% government backed for lenders, and businesses can apply online through a short and simple form

Thousands of small firms and sole traders will be eligible for 100% government-backed Bounce Back Loans to help them make it through the coronavirus outbreak.

To access the funding a small business owner can apply to accredited lenders by filling out a simple online form, with only seven questions.

The government has also agreed with lenders that an affordable flat rate of 2.5% interest will be charged on these loans. And any business that has already taken out a Coronavirus Business Interruption Loan of £50,000 or less can apply to have these switched over to this new scheme.

There will be no interest payable within the first year as it will be covered by the government and it will only become repayable by the business after 12 months, and then at a rate of 2.5%.

There are of course eligibility requirements to meet and certain organisations will not be eligible.

So if you are a small business and think you need some money to help tide you over then this new scheme is certainly worth consideration.

Further information can be found here;

https://www.gov.uk/government/news/new-bounce-back-loans-to-launch-today