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The government’s latest initiative to assist SMEs affected by the coronavirus is the Bounce Back Loans scheme which went live on Monday. It has been reported that the major UK banks received in excess of 45,000 applications to the scheme in a single day.

The Bounce Back Loans Scheme is intended to allow businesses to access finance more quickly than through the existing Coronavirus Business Interruption Loan Scheme (CBILS). The main points are: 

  • UK-based small and medium sized businesses can borrow between £2,000 and £50,000
  • 100% of the loan is backed by the government
  • No fees or interest payable within the first 12 months
  • Loan terms will be up to 6 years
  • The government will work with lenders to agree a low rate of interest for the remaining period of the loan
  • The scheme will be delivered through a network of accredited lenders

There are some businesses and organisations that are not eligible for the loan:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • state-funded primary and secondary schools under the Coronavirus Business Interruption Loan Scheme (CBILS).

In addition, you cannot apply for the Bounce Back Loans Scheme if you are already claiming funding for the Bounce Back Loans Scheme if you are already claiming funding under the Coronavirus Business Interruption Loan Scheme (CBILS).

How to apply

Information about the Bounce Back Loan Scheme and how to apply can be found on the British Business Bank website.

About the Author

Martin Johnson Image

Martin Johnson

Partner
With expertise in advising family-owned companies on a range of tax, accountancy and business issues, Martin also has an in-depth knowledge of the automotive and property sectors. In addition, he provides advice on inheritance tax planning and wealth management to owner-managed businesses.  Martin leads the firm in developing its expertise in the buy-to-let sector, advising both residential and commercial property owners on relevant tax and legislation issues.   A further element to Martin’s role is to build Torgersens’ relationships with banks, financial advisors and specialists in commercial and employment law to ensure that the firm’s clients have access to market-leading guidance.  

To get in touch please e-mail martin.johnson@torgersens.com.

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