COVID-19 Bounce Back Loans
This scheme started on 4 May 2020 and will not be subject to the complex viability assessment used with other Coronavirus Business Interruption Loan Scheme (CBILS) facilities. This is now supported by a "Pay as you Grow" Scheme which has extended the loan term to 10 years and offers interest only options and the ability to suspend payments for a period of time.
- You can borrow between £2,000 and £50,000 (but no more than 25% of turnover)
- Government will guarantee 100% of the loan
- No fees or interest to be paid for the first 12 months
- Loan term is up to 10 years
- No repayments due in first 12 months
- Government has stated they will work with lenders to agree a low rate of interest for the remaining term of the loan
- Interest only options and the ability to suspend capital and/or interest payments for up to 6 months if in real trouble will now be available. The ability to suspend capital repayments (for up to 6 months at a time) can be used no more than 3 times over the life of the loan.
To be eligible for the loan, businesses must:
- Be UK based in their business activity
- Have been negatively affected by Coronavirus, and
- We're not 'undertaking in difficulty' on 31 December 2019
Businesses from any sector can apply except:
- Banks, insurers and reinsurers (but not insurance brokers)
- Public sector bodies
- Further Education establishments if they are grant-funded
- State-funded primary and secondary schools
Please note that if you are already claiming under the CBILS facility then you cannot apply for a bounce back loan. However, if your CBILS loan is under £50,000 you can transfer it to a bounce back loan with your lender until 4 November 2020.
Take Action Now
To find out more about how Dains can support your business with an application for a Coronavirus Business Interruption Loan, please call 0845 555 8844 or simply complete our enquiry form. Don’t wait, take advice now, we are here to help you.