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What is the Bounce Back Loan Scheme?

The Bounce Back Loan scheme intends to help small and medium-sized businesses borrow between £2,000 and £50,000 from lenders to support them during the crisis.

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 and no repayments will be due in the first 12 months. The scheme will be delivered through a network of accredited lenders who will work with the government to agree a low rate of interest for the remaining period of the loan.

Who is eligible for the scheme?

You can apply for a loan if your business:

  • Is based in the UK
  • Has been negatively affected by coronavirus
  • Businesses that were undertakings in difficulty on 31 December 2019 can apply.
  • You can’t apply if you are already claiming under the Coronavirus Business Interruption Loan Scheme – but if your loan was less than £50,000, you can transfer the loan to the Bounce Back Loan Scheme. 

When will it become available?

The scheme was launched  on 4th May 2020.

Other Considerations

As this is a company loan to support businesses during the COVID-19 crisis, any funds taken from your company for personal use derived from the loan cash injection will still comprise dividends and attract personal tax liabilities accordingly.

Updated on 15th May 2020

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