As with the CBILS, borrowing is available from approved lenders.
What sort of borrowing terms are available for bounce back loans?
Sunak announced that the government were working with lenders to agree a low level of interest during the repayment period. The Winter Economy Plan also saw the repayment period increased from 6 to 10 years. This is part of the government’s pay as you grow promise, giving businesses more time to pay if needed.
In addition to guaranteeing 100% of the loan, the government will pay any fees or interest in the first 12 months.
How do I apply for a loan under the Bounce Back Loan Scheme?
Businesses will be able to apply for a loan under the scheme through a short, standardised online application, available from various approved lenders.
Crucially, business applications will also be assessed on their viability before coronavirus COVID-19, to make the scheme more accessible.
Does the Small Business Bounce Back Loan replace the Coronavirus Business Interruption Loan Scheme (CBILS)?
No – Sunak confirmed that the new lending scheme will run alongside the existing CBILS, and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).