- The Bounce Back Loan Scheme helps small and medium-sized businesses to borrow between £2,000 and £50,000.
- The government guarantees 100% of the loan and there is no interest to pay for the first 12 months, after which the interest rate will be 2.5% a year.
- You can move to interest only payments on a temporary basis up to three times, with each period lasting six months.
- You can also take one payment holiday for up to six months.
- The length of the loan is up to 10 years, but you can repay early without any extra fees.
To be eligible your business has to be:
- based in the UK
- established before 1st March 2020
- adversely impacted by the Coronavirus
When does it end?
The deadline to apply for the Bounce Back Loan scheme is the
30th November 2020, so, if you’re thinking about applying you should act now.
There are 11 lenders taking part in this scheme.
It usually takes around 4 weeks for your application to be processed, and if you are turned down by one lender you can try a different one.
You should apply through the lender’s website.
Use the link for the British Business Bank below to find out more information.
Although you can apply with a different lender if you are rejected, you can only have one Bounce Back Loan.
This means that if you already have a Bounce Back Loan, or if you have an application underway, you don’t need to do anything else.