The Government has launched a new ‘Bounce Back Loan’ scheme to support small and medium sized businesses.
From 4 May 2020 businesses can apply for the new ‘Bounce Back Loan’ scheme, which provides small and medium sized businesses with loans of between £2,000-£50,000, with no interest, fees or repayment for the first 12 months.
The scheme is covered by a 100% guarantee by HM Treasury, with funds available within days of application.
Firms that have already borrowed funds under the Coronavirus Business Interruption Loan Scheme (CBILS) may not apply for a Bounce Back loan.
However, if the amount borrowed under CBILS is up to £50,000, businesses can ask their lenders to transfer their loan into the Bounce Back scheme until 4 November 2020.
The NFDA will share more information on this scheme as it becomes available.
For further information on Bounce Back loans, visit the GOV.UK website: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan