.png)
Apply for a coronavirus Bounce Back Loan
https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
The Bounce Back Loan Scheme (BBLS) enables smaller businesses to access finance more quickly during the coronavirus outbreak.
The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
If you need a larger loan, you may be entitled to other government support.
Eligibility
You can apply for a loan if your business:
-
is based in the UK
-
was established before 1 March 2020
-
has been adversely impacted by the coronavirus
If your business was classed as a business in difficulty on 31 December 2019 you’ll need to confirm that you’re complying with additional state aid restrictions.
Who cannot apply
Businesses from any sector can apply, except:
-
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:
If you’ve already received a loan of up to £50,000 under one of these schemes you can transfer it into the Bounce Back Loan scheme. You have until 4 November 2020 to arrange this with your lender.
How long the loan is for
The length of the loan is 6 years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.
How to apply
There are 11 lenders participating in the scheme including many of the main retail banks. You should approach a suitable lender yourself via the lender’s website.
The lender will ask you to fill in a short online application form and self-declare that you are eligible.
The lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed.
If the lender turns you down
If one lender turns you down, you can apply to other lenders in the scheme.
You may want to consider using a broker to find the right type of finance for your needs, or do your own research using the British Business Bank’s finance guide.