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Government-backed loan schemes

Details of the Business Bounce Back loan scheme which provides up to £50,000 and the Business Interruption loan scheme which covers larger loans of up to £5 Million.


Last Updated: 17th May 2020

Coronavirus Business Interruption Loan scheme

This scheme is for longs of £50,0000 to £5 Million

  • You will need a sound borrowing proposal

  • Loans are available for up to £5 million for up to six years

  • Overdrafts and invoice finance facilities are available for up to 3 years

  • The scheme will be offered by all major banks

  • The government will cover the first 12 months of interest, and provide a partial guarantee

  • Personal guarantees will not be needed for loans of less than £250,000

  • Your home won’t be taken as security in any circumstances

  • See this link for more details.

Business Bounce Back Loans

  • Loans from £2,000 - £50,000 available, subject to a maximum of 25% of turnover 

  • No repayments or interest for the first year 

  • Low interest rate of 2.5% thereafter 

  • Loan term up to six years 

  • Simple online application 

  • Payments expected to be made within 24 hours 

  • 100% government guaranteed 


You are eligible to apply if 

  • Your business is UK based and has been adversely affected by the coronavirus 

You can’t apply if 

Your business was an ‘undertaking in difficulty’ on 31 December 2019 (this broadly means you had accumulated losses, or a negative balance sheet at that date) 

  • You already have a loan under the Coronavirus Business Interruption Loan Scheme (although if the loan is less than £50,000 you can apply to transfer it to the bounce back scheme – contact your lender to do this) 


Check out the following for more information:

Government guidance https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan 

Your own bank’s website (most banks are expected to be offering bounce back loans). 

 

Please note that the above is intended as a summary guide only. Please take further advice or check the detailed Government guidance before taking any action.