Coronavirus - Business Bounce Back

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Come May 4, businesses will be able to apply for a coronavirus Bounce Back Loan. This scheme will help small and medium-sized businesses affected by coronavirus to apply for loans of up to £50,000.

The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.

The Bounce Back Loan scheme will help small and medium-sized businesses to borrow from £2,000 to the upper limit of £50,000. The scheme will be delivered through a network of accredited lenders.

If you’ve already received a loan of up to £50,000 under Coronavirus Business Interruption Loan Scheme (CBILS) and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.

Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

 

Eligibility

You can apply for a loan if your business:

• Is based in the UK.

• Has been negatively affected by coronavirus.

• Was not an ‘undertaking in difficulty’ on 31 December 2019.

 

British Business Bank Announces Four New Lenders Under The Coronavirus Business Interruption Loan Scheme

Allied Irish Bank (GB)/AIB (NI), ThinCats, Paragon Bank and IGF are to join 48 existing Coronavirus Business Interruption Loan Scheme (CBILS) accredited lenders.

Meanwhile, 10 lenders have also been accredited through the Coronavirus Large Business Interruption Loan Scheme.

CBILS provides financial support to smaller businesses across the UK that are losing revenue and seeing their cashflow disrupted, as a result of the Covid-19 outbreak.

Following their approval, each lender will be putting in place the operations required to start lending under the scheme and will confirm shortly the dates from which they will be ready to start receiving CBILS applications from smaller businesses across the UK.

More than 80% of the UK’s smaller businesses have a finance relationship with CBILS’ 50+ accredited lenders. The British Business Bank is accelerating at pace the onboarding of new lenders to further extend the scheme’s reach.

It was originally announced at Budget that an initial £1bn of government-backed lending would be available through CBILS. The government subsequently announced that it would be a demand-led programme, providing whatever the market needs.

 

 “Accredited lenders have continued to see an incredible demand for CBILS, so the Bank is helping to meet that demand and provide even more choice for smaller businesses by approving additional lenders for accreditation to the scheme.”

– Keith Morgan 

CEO, British Business Bank

 

Business Secretary

Business Secretary Alok Sharma said: “These loans are an essential part of the wide-ranging package of support the government has put in place to help UK businesses. I am delighted to see more lenders offering loans which will, in turn, help even more businesses access the funds they need.”

 

About the Coronavirus Business Interruption Loan Scheme

The Coronavirus Business Interruption Loan Scheme, delivered through more than 50 British Business Bank accredited lenders, is designed to support the continued provision of finance to UK smaller businesses (SMEs) during the Covid-19 outbreak. The scheme enables lenders to provide facilities of up to £5 million to smaller businesses across the UK who are experiencing lost or deferred revenues, leading to disruptions to their cashflow.

The scheme supports a wide range of business finance products, including term loans, overdrafts, invoice finance and asset finance facilities.

Detailed information on CBILS can be found on the British Business Bank website.

 

Picture: Businesses will be able to apply for a coronavirus Bounce Back Loan from May 4.

Article written by Cathryn Ellis
01st May 2020

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