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
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.
