Are you eligible for a Bounce Back Loan from the government?

The Bounce Back Loan Scheme enables smaller businesses to access finance more quickly during the coronavirus outbreak. 

As the UK businesses have begun to reopen over the last few months, the government has developed a scheme which offers loans to small businesses who have struggled due to closure and lack of custom through the pandemic, in an attempt to help begin recovery and help keep small businesses thriving. 

The scheme was developed in order to help both small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover with a maximum of £50,000 borrowable. The government guarantees 100% of the loan and there won’t be any payments made or interest to pay for the first 12 months, however after 12 months, the interest rate will be 2.5% a year and the length of the loan is 6 years, which can be repaid. 

You can apply for a loan if your business is based in the UK, was established before 1 March 2020 and has been adversely impacted by the coronavirus. Find out more about eligibility here. 

There are currently 18 banks offering Bounce Back Loans, including TSB, NatWest, Starling and Yorkshire Bank. If your application is rejected, you are free to apply to another Bounce Back Loan provider. 

If you would like to know more or are considering whether this could be for you but need some advice, please contact a member of the team today.