On 27th April 2020, the Chancellor Rishi Sunak announced a new Bounce back scheme which should be a quicker and easy solution for those in need of smaller loans. You will recall that the CBILs (Coronavirus Business Interuption Loan scheme) minimum loan amount was £25,000 which was too much debt for many small businesses to contemplate taking on.
The Bounce back loan scheme will be:
Loans from £2,000 to a maximum of £50,000 or 25% of turnover
the government will pay the interest for the first 12 months
available from banks from 9am 4 May 2020
Loans should arrive within 24 hours of approval
There will be no forward looking tests of business viability; no complex eligibility criteria just a simple quick standard form for businesses to fill in.
At present, it seems that you can apply for a loan if your business:
is based in the UK
has been negatively affected by coronavirus
was not an ‘undertaking in difficulty’ on 31 December 2019