Apr 29
Bounce Back Loans Update 29/04/20
Managing Finances during the Covid 19 crisis for SME’s
New Max £50k Bounce Back Loan Scheme – 100% Government backed loan scheme for small business
Update – banks are trying to have these available, from their websites on Monday 4 May
On Monday 27 April Rishi Sunak announced the new Bounce Back Loan Scheme. Small businesses will benefit from the new fast-track finance scheme, providing loans with a 100% Government-backed guarantee for lenders. If you are a smaller company who struggled to get a Development Bank Wales or CBILS loan then this could be for you.
Covid19 Bounce Back Loan Scheme
- Businesses will be able to borrow between £2,000 and £50,000
- Cash should be made available within days
- Loans will be interest free for the first 12-months
- Businesses can apply online through a short and simple form – we believe lengthy forecasting won’t be required
- A low standardised level of interest for the remaining period of the loan
The Bounce Back Loans scheme will provide loans of up to £50,000 available to the smallest businesses affected by the coronavirus pandemic.
The Government will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12-months. No repayments will be due during the first 12- months.
How do I apply for a Bounce Back Loan?
The loans will be easy to apply for through a short, online application. The Government are suggesting that the loan should reach your business within days.
https://www.gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans
When can I apply for a Bounce Back Loan?
The scheme will launch for applications on Monday 4 May. You will be able to access these loans through a network of accredited lenders. But the best first port of call will be your own bank.
The Government are working with lenders to ensure loans delivered through this scheme are dealt with as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.
The new scheme will run alongside the existing Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS)
The Government are also taking additional steps on the Coronavirus Business Interruption Loan Scheme (CBILS) to ensure that lenders have the confidence they need to process finance applications quickly, including removing the per lender portfolio cap for the Government guarantee, and changing the viability tests that so that all banks will need to assess is whether a business was viable pre COVID19
If you are worried or would just like to check you have thought of everything do feel free to get in touch, remember that we are here to help and are just a phone call or e-mail away.
Correct at the date of circulation 29/04/2020, please see further posts for any updated notices


