As of tomorrow (4th May 2020) the UK Government is launching a brand new loan for business owners who have been disrupted by the Corona Virus.
The Bounce Back Loan Scheme is a little different from the Corona Virus Business Interruption Loan Scheme.
This new loans main features:
- No Interest For 12 Months
- No Repayments For 12 Months
- 100% backed up the UK Government
With this new type of business loan, you can borrow between £2k-£50k and have up until 6 years to repay it. As the government is backing 100% of it, it should mean that underwriting and application approvals should be high and the time it takes to get the credit into your bank account should be relatively quick. The government are said to be working with the lenders to ensure that the rate of interest after this period is low (Lending rates are currently at an all time low).
If you have applied for a Corona Virus Business Interruption Loan already, then you can’t apply for this as well.
If you already have a Corona Virus Business Interruption Loan, you can transfer it to a ‘Bounce Back Loan’ and will have until the 4th November to transfer it – if this is right for you.
You can apply for a loan if your business:
- is based in the UK
- has been negatively affected by coronavirus
- was not an ‘undertaking in difficulty’ on 31 December 2019