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Bounce back loan scheme for SMEs

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The government is to launch a new bounce back loan scheme on 4 May 2020, allowing small and medium-sized businesses to borrow between £2,000 and £50,000, with the government guaranteeing 100% of the loan.

For the first 12 months, there will not be any interest or fees and no repayments will be due. The loan term will be up to six years, with interest charged after the first year, the rate of which is to be agreed between the government and lenders.

A business can apply if it is based in the UK, has been negatively affected by coronavirus and was not in difficulties on 31 December 2019.

No claim can be made if a claim has already been made under the coronavirus business interruption loan scheme (CBILS), although a loan under CBILS can be transferred to the bounce back loan scheme.

Issue: 1485
Categories: News