On 27 April, the government announced a Bounce Back Loan Scheme for small and medium-sized businesses based in the UK, who have been negatively affected by coronavirus. This could be a potential lifeline for some travel companies as the government has said the cash will be accessible within days of having your application approved. Now that the scheme has been launched, we have pulled together the key facts about the loan to help you decided whether to apply.
SMEs can borrow between £2,000 to £50,000 and the loan will be 100% guaranteed by government. We understand that companies won’t be charged any fees or interest, the loan terms will be up to six years with no repayments needing to be made in the first 12 months, and we expect there to be a low interest rate for the remaining period.
The loans will be delivered through accredited lenders however it is worth noting that if you have already been accepted for a CBILS loan, you aren’t able to also apply for this. If you already have a CBILS loan of up to £50,000 then you can transfer to a Bounce Back Loan by 4 November. To do this, please get in touch with your lender.
Banks, insurers and reinsurers are unable to apply however insurance brokers are eligible. Public sector bodies and state-funded primary and secondary schools also can’t apply, neither can any grant-funded, further-education establishments. You can only apply if your business was not an, ‘undertaking in difficulty’ on 31 December 2019.
How to apply – please speak to your lender who will provide you with an application form.
If you have any questions, feel free to get in touch.
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