Government-Backed Loans

The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.

The scheme is open to applications until 31 January 2021.

If you already have a Bounce Back Loan but borrowed less than you were entitled to, you can top up your existing loan to your maximum amount. You must request the top-up by 31 January 2021.

How long the loan is for

The length of the loan is 6 years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.

Before your first repayment is due, your lender will contact you about further options to:

• extend the term of your loan to 10 years
• move to interest-only repayments for a period of 6 months (you can use this option up to 3 times)
• pause your repayments for a period of 6 months if you have already made at least 6 repayments (you can use this option once)

How to apply

It is recommended that you approach your own business bank first.

For further information this is a link to Martin Lewis’s site.

https://www.moneysavingexpert.com/news/2020/05/small-business-boost-as-bounce-back-loans-launched/

The lender will ask you to fill in a short online application form and self-declare that you are eligible.

The lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed.