COVID-19 Bounce Back Loans
NOW CLOSED - Please see the new Recovery Loan Scheme (RLS)
This page was last updated on 6 April 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.
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.
You can apply for this scheme until 31 March 2021. Please note this scheme is closed and you will need to look at the Recovery Loan Scheme for assistance.
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.