This Loan scheme will 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 6 years. No repayments will be due during the first 12 months. After 12 months, the interest rate is 2.5% per year.
The scheme will be delivered through a network of accredited lenders.
ELIGIBILTY CITERIA:
Businesses can apply if:
- They are based in the UK
- They were established before 1 March 2020
- They have been negatively affected by coronavirus
- They earn 50% or more of its income from trading (not required if the business is a charity or a further education college).
- The business is not an ‘undertaking in difficulty’ on 31 December 2019 (or they certify that taking out a Bounce Back Loan will not breach state aid rules and that they will not use the loan for export-related activities)