Applications for the so-called Coronavirus Bounce Back Loans for small and medium sized businesses opens today at 9am.
Smaller businesses can apply for loans of between £2,000 and £50,000, with lending being fully backed by the government.
The loan amount claimable is capped at 25% of turnover and crucially the application process is a simple series of – seven – questions that business owners can complete in a matter of minutes.
Once the application is completed, a decision will be made promptly and funds released a few days after this point.
Crucially, the loans are available fee and interest free for the first 12 months and are then convertible after this point.
We expect the loans to be converted over a period of five years after this fee and interest free period, with an expected rate of 2.5% interest above the base rate.
This represents both very fast access to much-needed cash funds and also very favourable lending terms in the medium-term as businesses affected by the outbreak recover.
The application is made via a network of well-known lenders – see more here – and most businesses will find the most success by approaching their existing bank.
If you have any questions regarding this scheme or if you need assistance making applications, please contact our team immediately.
Coronavirus Support Team