Fund title: Bounce Back Loan Scheme
Focus of fund/fund aims:
Loans up to £50,000, with no repayments, fees or interest for the first 12 months, for SMEs negatively affected by coronavirus
31 January 2021
The Bounce Back Loan Scheme helps small and medium-sized businesses affected by coronavirus to access loans of up to £50,000.
UK-based businesses negatively affected by coronavirus can borrow between £2,000 and £50,000. The government guarantees 100% of the loan and there are no fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
The government has extended the scheme until January 2021 and introduced some new options: businesses can now top up existing loans, extend the loan period, make interest-only repayments, or pause repayments.
There are 28 lenders participating in the scheme including many of the main retail banks. These are listed on the British Business Bank website: businesses need to make direct contact with one of the lenders to arrange the loan.