A new government backed Bounce Back Loans Scheme, will allow small businesses to borrow between £2,000 and £50,000 and access the cash within days.
Loans will be interest free for the first 12 months and businesses can apply online through a short and simple form. 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.
The loans will be easy to apply for through a short, standardised online application. Loans should reach businesses within days – providing immediate support to those that need it as easily as possible.
The scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders. The government will work with lenders to ensure loans delivered through this scheme are advanced 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 Business Interruption Loan Scheme (CBILS) and Large Business Interruption Loan Scheme (CLBILS).