This new loan scheme was announced yesterday, applications starting next Monday, 4th May.
Applications can be made up to £50k or 25% of your annual turnover, whichever is the lower.
We are not fully aware of the application process but, apparently, its going to be a simple on-line form with very little financial information required. The loan is guaranteed 100% by the Government, hence the fast track application process.
If a business has already been approved for a CBILS loan then they cannot apply, however, they can transfer that loan to the Bounce Back Loan.
As with CBILS, there is no interest or fees for the first 12 months with loans available over a total of 6 years from drawdown.
Eligibility is fairly relaxed although firms that were ‘undertaking in difficulty’ on 31st December 2019 will be ineligible. The criteria for ‘undertaking in difficulty’ has not been defined.
More detail is expected over the course of this week, again as with CBILS, access will be through accredited lenders.
You may want to register your interest, if eligible and not in receipt of CBILS, with your relationship manager sooner rather than later.
For additional information, and to apply for the Bounce Back Loan – please click here.