Rishi Sunak has unveiled 100% state-backed loans for small firms
Key Contact: Christian Farrow
Author: Elena Visser
The Bounce Back Loan scheme has been unveiled to help small and medium sized businesses to borrow between £2,000 and £50,000.
The government will guarantee 100% of the loan and there will not be any fees or interest to pay for the first 12 months. Loan terms will be up to six year and no repayment will be due during the first 12 months.
You will be able to apply for a loan if your business is based in the UK, has been negatively affected by coronavirus and was not an “undertaking in difficulty” on 31 December 2019. Certain businesses are also not eligible to apply and these include banks, insurers and reinsurers (but not insurance brokers), public sector bodies, further education establishments (if they are grant funded) and state-funded primary and secondary schools. You also cannot apply if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
The scheme is going to be delivered through a network of accredited lenders.
The scheme is not yet available and will be launched on 04 May.
Further details of the proposed scheme can be found here.
Please see our daily updated Financial Support Guide for Businesses for further information- COVID-19 FINANCIAL SUPPORT FOR BUSINESSES
For more information on any of the points raised, please contact our corporate team.