A new ‘Bounce Back’ small loan scheme has been announced by the Government for businesses affected by Covid-19.
This is another positive news story and we can confirm that this support will go live on Monday 4th May at 9am.
Here are some further points on the scheme that you may find useful:
- It is a 100% government-guaranteed loan for amounts between £2,000 and £50,000. Please note the loan will be capped at 25% of your business turnover
- The scheme will be available up to 4th November so this could be a good option should your Coronavirus Business Interruption Loan Scheme (CBILS) application be unsuccessful or if you re-forecast a change in your numbers over the coming weeks/months
- Loans will be interest free for the first 12 months and you will then be expected to repay the loans for five years after that
- The applications will have no forward-looking test of business viability, no complex eligibility criteria, just a simple, quick standard form for you to fill in
- Funds will be made available within 24 hours of approval, to ensure cash gets to small businesses quickly
This is good news, however, we would always recommend that you review your forecasts before applying for any new loan to ensure that you are requesting the right amount and that you can afford to pay it back.
While this cash will provide some welcome relief, it is very important that you consider your projected cashflow to make sure you aren’t going to cause yourself any problems in the future.