On 2 November 2020, the Chancellor announced that the Bounce Back Loans scheme has been extended to 31 January 2021.
The scheme was launched to help many small and micro businesses that appeared to have fallen through the cracks and were ineligible for most of the support measures that had previously been announced.
The new scheme will allow small businesses to borrow between £2,000 and £50,000 and access the cash, in most cases, within 24 hours of approval. The loans will have a 100% government guarantee and businesses can apply for a loan of up to 25% of their turnover. The government will also pay the interest on these loans for the first 12 months and no repayments will be due during this time.
The Chancellor said that banks will not need to perform any forward-looking test of business viability or other complex eligibility criteria and that businesses will be able to apply for a loan online using a short and simple form. The new scheme opened for applications on Monday 4 May and you should contact your finance provided or go to the British Business Bank to view the list of accredited lenders.
In order to be eligible, your business can apply if:
- it is based in the UK
- has been negatively affected by Coronavirus
- was not an “undertaking in difficultly” on 31 December 2019
- are not already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS); however, if you’ve already received a loan of up to £50,000 under CBILS you are able to transfer it to the Bounce Back Loan Scheme.