The ‘Bounce Back Loan Scheme’ is a new support scheme from the Government, adding to the existing support for small businesses affected by coronavirus.
You can borrow from £2,000 up to 25% of your annual turnover, up to a maximum of £50,000 for up to six years.
For the first 12 months, you won’t pay any interest because the Government will pay it for you. You also won’t have to make any repayments in the first 12 months. There are no fees on a Bounce Back Loan – unlike other loans, you won’t pay fees to arrange the loan, to repay it early or if your repayments are overdue.
For the rest of the term of the loans, you’ll pay interest at 2.5% per year.
Bounce Back Loans are delivered only by lenders accredited by the British Business Bank. The Government provides a 100% guarantee to lenders for all eligible Bounce Back Loans, but you remain liable for all the repayments, as well as the interest after the first year.