Rishi Sunak has unveiled 100% state-backed loans for small firms

Print Friendly, PDF & Email

Rishi Sunak has unveiled 100% state-backed loans for small firms

Key Contact: Christian Farrow

Author: Elena Visser

The Bounce Back Loan scheme has been unveiled to help small and medium sized businesses to borrow between £2,000 and £50,000.

The government will guarantee 100% of the loan and there will not be any fees or interest to pay for the first 12 months. Loan terms will be up to six year and no repayment will be due during the first 12 months.

You will be able to apply for a loan if your business is based in the UK, has been negatively affected by coronavirus and was not an “undertaking in difficulty” on 31 December 2019. Certain businesses are also not eligible to apply and these include banks, insurers and reinsurers (but not insurance brokers), public sector bodies, further education establishments (if they are grant funded) and state-funded primary and secondary schools. You also cannot apply if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).

The scheme is going to be delivered through a network of accredited lenders.

The scheme is not yet available and will be launched on 04 May.

Further details of the proposed scheme can be found here.

Please see our daily updated Financial Support Guide for Businesses for further information-  COVID-19 FINANCIAL SUPPORT FOR BUSINESSES

For more information on any of the points raised, please contact our corporate team.

Recent Posts

tenant participation in retrofitting
How to Use the Law Effectively to Achieve Tenant Participation in Retrofitting
November 1, 2024
“To Card or Not to Card: That is the Question”
October 31, 2024
Workplace Banter: Comments About Being Bald Crossed the [Hair] Line
October 30, 2024
Can Your Sponsored Employee Take on a Second Job?
Can Your Sponsored Employee Take On a Second Job?
October 29, 2024
October Litigation Update: Mandatory ‘Alternative Dispute Resolution’
October 25, 2024
Business Tenancies: The Right to Renew
October 24, 2024

Archives

Categories

Skip to content