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 March 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 31 March 2021 and introduced some new options: businesses can now top up existing loans, extend the loan period, make interest-only repayments, or pause repayments.
Further flexibility has been introduced through ‘Pay as you Grow’ which gives some further options to businesses that have Bounce Back Loans:
- Extend the length of the loan from six years to ten
- Make interest-only payments for six months, with the option to use this up to three times throughout the loan
- Pause repayments entirely for up to six months
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.