Yesterday the government announced a new scheme for small businesses - the Coronavirus Bounce Back Loan scheme.
Find below everything confirmed thus far:
How the scheme works
All businesses will be able to borrow up to 25% of thier turnover (Capped at £50,000 and subject to a minimum of £2,000) from accredited lenders.
These loans will be fully guaranteed by the Government
How interest and repayments will work
Interest will be decided by the approved lenders.
The first 12 months will be both interest and repayment free.
What if I already took out a CBIL?
If you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.
Whats the difference between this and a CBIL?
A CBIL requires more stringent credit checking - these loans are guaranteed by the government and have been simplified for lenders. The government expect lenders to make decisions within 24 hours, and release cash within days.
How do I apply?
More detail is expected in the coming days - however applications forms are expected to be simplified and standardised across all lenders, with the government expecting it to be a 2 page application form process.