Bounce Back Loan Scheme
After it was announced last week, the Bounce Back Loan Scheme has gone live today.
Delivered by the British Business Bank’s accredited providers (full list can be found here), the scheme will offer access to loans worth 25% of a startups’ turnover, up to a maximum of £50,000. Other details of the scheme include:
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Up to £50,000 loan: Loans will be from £2,000 up to 25% of a business’ turnover or £50,000, whichever is lower.
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Interest rate: The government has set the interest rate for this facility at 2.5% per annum, meaning businesses will all benefit from the same rate of interest.
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Interest paid by the government for 12 months: The government will make a Business Interruption Payment to the lenders to cover the first 12 months of interest payable.
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No principal repayments for first 12 months: Borrowers will not have to begin principal repayments for the first 12 months.
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Finance terms: The length of the loan is for six years but early repayment is allowed, without early repayment fees.
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No personal guarantees: No personal guarantees are allowed
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