The Bounce Back /Mirco Company Loan Scheme
The Chancellor, Rishi Sunak has announced a new Government-backed lending scheme targeted at small businesses. The fast-track finance scheme will provide loans with a 100% government-backed guarantee for lenders under the name of The Bounce Back Loan Scheme.
The scheme, which will provide loans of up to £50,000, will help bolster the existing package of support available and has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days.
The key details of the scheme are:
- The government will provide lenders with a 100% guarantee for the loan and pay any interest for the first 12 months.
- The maximum loan will be 25% annual turnover subject to a cap of £50,000.
- Loan Amounts from £2,000 up to £50,000 max.
- No repayments will be due during the first 12 months.
- The loans will be easy to apply for through a short, standardized online application.
- The loan should reach businesses within days – providing immediate support to those that need it as easily as possible.
- The scheme will launch for applications on Monday 4 May and businesses will be able to access these loans through a network of accredited lenders.
- Loan available up to 6 years
- The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree on a low standardised level of interest for the remaining period of the loan:
ELIGIBILITY & Documents
You can apply for a loan if your business:
- Based in the UK
- Negatively affected by a coronavirus. Covid19 fact-find
- The business was not an ‘undertaking in difficulty’ on 31 December 2019.
- Filed Accounts for 2019
- Latest Management Accounts
- Cashflow forecast for the next 12 months
- Last 6 months bank statement
- The current list of Debtors & Creditors
- Preferable a profitable company as on Dec 2019
- Directors Details – Home Address, Homeowner or Tenant, Years
- Staying at that address, less then 3 years all Address. Director Asset & Liability statements
- Directors and Company needs to have a good credit history
WHO CANNOT APPLY
The following businesses are not eligible to apply:
- Banks, insurers and reinsurers (but not insurance brokers)
- Public-sector bodies
- Further-education establishments if they are grant-funded
- State-funded primary and secondary schools
- If you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).