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New bounce back scheme offers loans up to £50,000

Fish and chip shops affected by coronavirus can apply for a loan of between £2,000 and £50,000 in a new fast-track finance scheme that is 100%-backed by the government.

The new Bounce Back Loan scheme will launch on 4th May 2020, offering loans of up to six years with no fees or interest to pay for the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

To apply, shops will simply need to fill out a short, online application and funds should be deposited into bank accounts within days, providing immediate support to those that need it as easily as possible.

Only those businesses based in the UK, which have been negatively affected by coronavirus and were not an ‘undertaking in difficulty’ on 31st December 2019 can apply.

Businesses already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS) cannot apply, however, if they have already received a loan under CBILS it can transferred into the Bounce Back Loan scheme until 4th November 2020.

The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days, and comes alongside the £6 billion awarded in business grants, supporting 4,000,000 jobs through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.

The Chancellor of the Exchequer, Rishi Sunak said the new initiative would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic, adding: “Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.

“This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”

Business Secretary Alok Sharma added: “Our small businesses are vital in ensuring our communities thrive and will be crucial in creating jobs and securing economic growth as we recover.

“This rapid loan scheme offers additional protection so small companies across the country can get access to the finance they need immediately, as part of the unprecedented package of support we have put in place.”

For further details of the Bounce Back Loan Scheme, click here.

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