Chancellor Rishi Sunak has announced a new business loan scheme for small businesses, named the Bounce Back Loan Scheme, because businesses are needing help during the Covid-19 crisis.
- Business Loans can be between £2,000 and £50,000
- Up to 25% of business turnover
- 6 year term at 2.5% interest, with the government covering the first year of interest payments.
- 100% government guaranteed
To apply for a bounce back business loan businesses will need to complete a simple application form which self-certifies whether they are eligible.
Eligible firms will be subject to standard customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks.
Helpfully the British Business Bank website has a list of accredited lenders here.
And full details of the Government’s own announcement can be seen here.