New Coronavirus funding loans launched today (4th May) for small businesses.
Loans up to max of £50000 or 25% of turnover.
Loans are 100% guaranteed by the government.
Loan is interest and fee free for the first 12 months. Interest is then set at 2.5% per year.
Loan term is up to 6 years but can be repaid early without penalty.
Application for loan will be able to be done online and if successful funding expected to be available within days.
Criteria to apply for loan if your business is
based in the UK
has been negatively affected by Coronavirus
was not in "financial difficulty "on 31st December 2019
Bounce Back loans can't be claimed if business has already received a CBILS loan. However if certain criteria are met, a CBILS loan can be transferred to the Bounce back loan scheme.
All Accredited lenders for CBILS expected to offer Bounce Back Loans.
Dear clients and friends,
Today the government has launched the Bounce Back Loan Scheme designed for small businesses who for various reasons have not been able to access the larger CBILS loan scheme.
I have highlighted the key points above. The loan scheme is beneficial for those in need of a relatively small loan (max £50,000) and it is likely to be significantly cheaper than the CBILS loan as the interest rate after the first year is fixed at 2.5% pa. Applying for the loan will also be more straightforward with the main limiting criteria being that the business was not in "financial difficulty" at 31st December 2019. In practice this is likely to mean that the company was solvent with positive net assets at that date.
Full details including how to apply for the scheme can be found here
Please feel free to reach out if you have any questions.
Zac