Last night, the Chancellor, Rishi Sunak, launched a new “Business Bounce Back” loan scheme, following massive pressure from over 5 million of Britain’s smallest firms over fears they were being failed by Treasury rescue efforts.

This scheme is not yet available but will launch on 4th May 2020.

The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.

The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.

Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

The scheme will be delivered through a network of accredited lenders.

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

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