Coronavirus bounce back loan scheme

The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000. The government will guarantee 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.

Loan terms will be up to six years and no repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

The scheme will be delivered through a network of accredited lenders.

You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS) or the COVID-19 Corporate Financing Facility. However, if you’ve already received a loan of up to £50,000 under either of these schemes and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4th November 2020.

The length of the loan is six years, but you can repay early without paying a fee. No repayments will be due during the first 12 months

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.