NEVER has there been a better time to obtain cost-effective funding for those much-needed machinery upgrades…NEVER has there been a better time to obtain cost-effective funding for those much-needed machinery upgrades…

How does the loan work?

The Bounce Back Loan Scheme is different to the Coronavirus Business Interruption Loan Scheme, which is for larger amounts and not 100% state-guaranteed. If you’ve already applied for the Coronavirus Business Interruption Loan Scheme, you can apply to have it switched to this scheme if you’d prefer.

Everything you need to know about bounce back loans:

• You can borrow between £2,000 - £50,000, although the amount is capped at 25% of your annual turnover.
• No interest will be charged and no repayments will be required in the first 12 months. After this period, all banks will charge a fixed 2.5% annual interest fee. This is far cheaper than a typical personal loan.
• You can repay the loan early without penalty.
• The loans are set up to last for 6 years. So that's a year interest-free and the rest at 2.5%.
• The loans are unsecured. Whilst that may sound like a bad thing, it’s actually positive. Mortgages, for example, are secured loans, which means they can take your home if you don’t pay. In this circumstance, you don’t give security (the Government does), so it's far more difficult for them to take your assets if you can't repay.
• Your business must have been established before 1 March 2020.
• Credit ratings (business or personal) won’t impact your eligibility, so the loan is incredibly accessible.
• The loan will likely go on your business credit report, not your personal one.
• At least 8 banks are offering these bounce back loans.
• You need a business to set up a bounce back loan, but you don’t need a business bank account.
• Bounce back loans will NOT affect your eligibility for other Government personal support, including the self-employment income support grants and universal credit.