Small and medium-sized businesses affected by coronavirus pandemic can apply for loans of up to £50,000 from today
Businesses will be able to apply for loans of up to £50,000 from today in a scheme backed by the UK Treasury.
The new scheme, called Bounce Back Loans Scheme (BBLS) will offer smaller amounts than the existing Coronavirus Business Interruption Loan Scheme (CBILS).
BBLS will provide loans of up to £50,000 and is aimed at supporting small and medium-sized businesses affected by the coronavirus pandemic.
The UK 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 with no repayments due during the first 12 months.
The scheme will be delivered through a network of accredited lenders, they will not be able to charge more than 2.5% interest on the loans.
The Chancellor of the Exchequer, Rishi Sunak, said:
“Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.
This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”
Eligibility
You can apply for a loan if your business:
- is based in the UK
- has been negatively affected by coronavirus
- was not an ‘undertaking in difficulty’ on 31 December 2019
Who cannot apply
The following businesses are not eligible to apply:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
If you’re already claiming funding
You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).
If you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.
How to apply
The Bounce Back Loan scheme will launch on 4 May 2020 https://www.gov.uk/government/organisations/hm-treasury
Want to know more about the financial support available to small businesses during the coronavirus (COVID-19) outbreak?
Sign up for free webinars hosted by The Department for Business, Energy and Industrial Strategy (BEIS).
Financial support for small businesses during coronavirus – which takes place on Tuesday 5 May 2020 at 11am, this webinar will cover:
- eligibility for small business grants
- applying for a loan
- tax
- claiming for wages through the Coronavirus Job Retention Scheme
To register for the webinar please visit the Eventbrite website.
Managing your business during coronavirus: reporting, regulations and tax – which takes place on Thursday 7 May 11am, this webinar will cover:
- right to work checks
- filing reports and accounts
- time to pay scheme
To register for the webinar please visit the Eventbrite website.
Please visit the Business Wales Coronavirus advice for businesses pages for information for your business on dealing with the Coronavirus outbreak.
Spotted something? Got a story? Send a Facebook Message | A direct message on Twitter | Email: [email protected]Latest News
