Sunak stated: “There will be no forward-looking tests of business viability; no complex eligibility criteria; just a simple, quick, standard form for businesses to fill in. For most firms, loans should arrive within 24 hours of approval.”
Unlike the existing Coronavirus Business Interruption Loan Scheme, banks will not retain any of the risk for the Bounce Back Loans .
The scheme requires applicants complete a two-page self-certification form online, while the loan terms mean no capital or interest repayments will be due for one year.
The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.
The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.
Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.
The scheme will be delivered through a network of accredited lenders. Banks have been facing increasing pressure for delays in granting loans, but have blamed the heavy workload, having to complete the necessary credit checks, and staff shortages
What are the features?
Borrow between £2,000 and £50,000
12 Month repayment holiday
12 months of interest and any fees covered by CBILS
Loan terms from 2 to 6 years
No Personal Guarantees
Loans advances up to 25% of turnover up to maximum £50,000.00
Minimal information needed to apply
Unsecured business loan
Am I eligible?
Have been negatively affected by coronavirus
Loan is for business purposes
Was not ‘undertaking in difficulty’ on 31 December 2019
What will we need to provide?
Short application form (provided)
Business owners personal details
Up to date bank statements for the last 6 months
Full year end financial accounts (profit & loss and balance sheet)
When can we apply?
The Bounce Back Loan scheme will launch on 4 May 2020.
**If you’ve already received a loan of up to £50,000 under CBILS( Coronavirus Business Interruption Loan Scheme) and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.
Please be assured, once again, that we are only a phone call away, and do not hesitate to contact us should you require any information/assistance.