The Government has launched a loan scheme to assist SME's who are affected by Coronavirus so that they can apply for loans of up to £50k.

This page was last updated on 3 February 2021

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
  • After 12 months the interest rate will be 2.5% a year
  • Loan term is 6 years with the option to extend 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
  • Established before 1 March 2020 
  • 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 or rthe COVID-19 Corporate Financing 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 31 March 2021.

Top-ups 

If you took a Bounce Back Loan but borrowed less than you were entitled to, you can top-up your existing loan to your maximum amount. The deadline for requests to top-up is 31 March 2021.

Application deadline: New

You can apply for this scheme until 31 March 2021.  

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.