Small Business Bounce Back Loan Scheme launched

Chancellor Rishi Sunak has announced a new business loan scheme for small businesses, named the Bounce Back Loan Scheme, because businesses are needing help during the Covid-19 crisis.

• Business Loans can be between £2,000 and £50,000
• Up to 25% of business turnover
• 6 year term at 2.5% interest, with the government covering the first year of interest payments.
• 100% government guaranteed

To apply for a bounce back business loan businesses will need to complete a simple application form which self-certifies whether they are eligible.

Eligible firms will be subject to standard customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. 

Helpfully the British Business Bank website has a list of accredited lenders here.

And full details of the Government’s own announcement can be seen here.

Importantly our advice remains the same, before leaping in speak to your Accountant and / or business advisor. So, consider carefully your business future and decide if you will be able to cover the loan in the future.