The Chancellor has announced on Monday 27th April that there is a new Business Loan for businesses which will be 100% Guaranteed by the Government.
The “Bounceback” loans will be available from Monday 4th May and once a short form is completed, the Loan should be paid out within 24 hours. Businesses can apply for a minimum of £2,000 and a maximum of one quarter of their last financial year’s turnover, with a cap of £50,000.
There is no size limit to a businesses for this loan so it means in our view it will be open to any company that meets the criteria which at present states they must of been trading before the 1st March 2020.
The Government is also covering all fee’s and interest over the first 12 months. At the present time, there is no information about how much the interest rate will be thereafter but the Treasury have said it will be very low.
Please note that businesses who have already recieved a CBILS Loan will not be allowed to apply for this loan.
For further information about the Bounce Bank Loans and how to apply, please visit the British Business Bank Website here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/