As additional support for those affected by coronavirus, the Chancellor has announced the Bounce Back Loan, a new level of funding enabling you to borrow between £2,000 and £50,000, promising access to the cash within days.

With loans being interest free for the first 12 months, this is a quick way to inject your business with some much-needed cash to help you survive the current pandemic.

The loans will be supplied through a network of accredited lenders and the government is working to ensure the money is released quickly and to agree that a low level of interest for the remaining period of the loan is standardised across all lenders.

What we know about it:

·        Officially launches on Monday 4 May and you can apply online on that day

·        You’ll be able to borrow between £2,000 and£50,000, with the maximum loan value being the lowest of 25% of your annual revenue or £50,000

·        Loans will be fee and interest free, with no capital repayments due for the first 12 months, so you pay nothing in the first year

·        The loan term can be up to 6 years

·        The online application form will be self-certified by the Director(s) and finance will be provided through a number of accredited lenders

·        Your business will be liable for the whole of the debt and so Director(s) must satisfy themselves that they understand and will be able to pay the required repayments when they start 12 months after receiving the loan

What we know about eligibility:

·        You must be UK based and have been negatively affected by the crisis

·        Your business mustn’t have been an ‘undertaking in difficulty’ on 31 December 2019

·        You mustn’t have already applied under the Coronavirus Business Interruption Loan Scheme (CBILS) but if you have, and your loan is under £50,000, you can talk to your lender about transferring the CBILS loan to a Bounce Back Loan. The deadline for this transfer request is 4th November 2020

Please contact Phil Ward if you want to chat about this in more depth.

Good luck, and take care.

The Kaizen Team

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