Bounce Back loans are still available. But be quick – you’ll need to apply for one by 31st January 2021.
The Bounce Back Loans scheme was launched in May 2020 to provide financial support to businesses disrupted by the COVID-19 pandemic. The scheme allows small businesses to borrow between £2,000 and £50,000. In most cases the cash can be accessed within 24 hours of approval.
- The scheme was launched for an initial period of 6 months but it’s now been extended until 31 January 2021.
- The loans come with a 100% government guarantee.
- Businesses can apply for a loan of up to 25% of their turnover.
- The government will also pay the interest on these loans for the first 12 months
- and no repayments will be due during this time.
- After 12 months the interest rate will be a very affordable 2.5% a year.
It’s also possible for businesses to ‘top up’ existing Bounce Back Loans. This applies to businesses who borrowed less than their maximum loan allowance.
The scheme is available through a network of 28 British Business Bank accredited lenders including the five largest banks. Banks will not perform any forward-looking test of business viability or other complex eligibility criteria for these loans. Businesses can instead apply for a loan online using a short and simple online form.
