Yesterday, April 28th, the Chancellor Rishi Sunak announced a new loan scheme specifically for small and medium sized businesses.
The scheme called the Bounce Back Loan Scheme launches next Monday 4th May.
The criteria are more relaxed than for the CBIL scheme.
- Businesses will be able to apply for up to £50,000.
- Loan can be no more than 25% of your annual revenue. So need £200,000 turnover to be eligible for £50,000.
- Need to demonstrate that business has been affected by Covid-19.
- Simple application – one standard form.
- Money should be in your bank account in 24 hours.
- Most businesses will be eligible.
- No fees or interest to pay in the first 12 months.
- No repayments in the first 12 months.
- Loan term up to 6 years.
- Low rates of interest.
Business plan and budget
If you are considering applying for a loan, we would recommend that you only borrow what you think you will need.
We definitely recommend that you prepare a budget and include your loan repayments in it. If you need help with this, let us know. We can provide a budget template to help you.