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Small Businesses Boosted by Bounce Back Loans

28th Apr 2020
Business, Coronavirus, Leadership

Bounce Back Loans

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

The current guidance confirms that you cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).

The scheme opened for applications on Monday 4 May and firms will be able to access these loans through a network of accredited lenders here.

Access our full range of HR guides on the Coronavirus Support Hub 

If you have any immediate or urgent issues get in touch with us to discuss your options in these tough and uncertain times. 

Essex 01245 410201  |   Suffolk 01473 360160   |   Norfolk  01603 791256 

Brilliant service and advice from MAD-HR.   Thank you so much, you’ve made the process of taking on our first employee an absolute breeze! Highly recommended.