How much can I borrow under the new Small Business Bounce Back Loan?
Small businesses will be able to take out one of the new government-backed loans, borrowing between £2,000 and £50,000.
How quickly will I be able to access the Small Business Bounce Back Loan?
The government have confirmed that applications for the Bounce Back Loan will open online from 4th May 2020. As with the CBILS, borrowing will be available from approved lenders.
The government have assured anxious businesses that they are working alongside lenders to make sure that the scheme is delivered as quickly as possible, with funds available in just days.
What sort of borrowing terms are available under the Business Bounce Back Loan?
Sunak announced that the government were working with lenders to agree a low level of interest during the repayment period.
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 Small Business Bounce Back Loan?
Businesses will be able to apply for a loan under the scheme through a short, standardised online application, available from various approved lenders.
Unlike CBILS, lenders will not be capped on the amount they can offer under the government guarantee. 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).