Today (4th May) is the launch of the newly announced bounce back loan scheme, introduced by the government as a way to give immediate help to businesses that are struggling with the CBILs (Coronavirus Interruption Loan Scheme).
So far the over £4.1 billion has been paid out to more than 25,000 businesses in the U.K. but many applications are taking longer than anticipated to be processed, or they didn't make it past the first hurdles. The applications have indeed been rigorous.
Details of the loan
Loans will be interest free for the first 12 months
Lend between £2000 and £50,000, a maximum of 25% of your turn over
Loans are 100% government backed (CBILs are only 80% backed)
Loan terms will be up to 6 years.
No repayments will be due during the first 12 months.
Interest for the remainder of the loan period to be set at 2.5%
Available from 9.00am today
Simpler application process
You can refinance your CBIL if below £50k (speak to your lender, deadline 4th November 2020)
You can apply for a loan if your business:
is based in the U.K.
has been negatively affected by corona virus
was not an ‘undertaking in difficulty’ on 31 December 2019
Things to consider
Government back means taxpayer backed
Speak to an accountant before applying to make sure this is the right lending option for you
Ensure you have a plan to replay the dept
Consider all options of funding, there might be less risky options out there
First accredited Lenders
Royal Bank of Scotland
We are happy to help if you need a professional pair of eyes on the matter. Get in touch at firstname.lastname@example.org