Bounce back loan schemes are available over a fixed six-year term. Businesses are not required to make repayments for the first 12 months but will still have to repay the loan and any interest after the 12 months. After 12 month the interest rate will be 2.5% a year.
The scheme helps small and medium-sized businesses to borrow between £2000 and up to 25% of their turnover however the maximum loan available is £50,000. The government guarantees 100% of the loan.
You can apply for a loan if your business:
- is based in the UK
- was established before 1 March 2020
- has been adversely impacted by the coronavirus
Businesses from any sector can apply, except:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
You can contact the banks and enquire about the loans that best suit your company and they will ask you to complete a short online application form and self-declare that you are eligible.
A list of lenders can be found on the government website or click the link below,
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
