The government’s bounce back loan scheme is now open for applications. Find out more and apply.
Here’s what you need to know:
100% Government backed (Government is guaranteeing 100% losses to the lender while the borrower remains fully liable for paying back what they owe)
Provides loans between 2K and £50K
Any business can apply for loans worth 25% of their turnover
Up to a maximum of £50K
Loans can last for up to 6 years
No repayments, fees or interest will be due for the first 12 months
Interest rate is 2.5% after the interest free 12 months ends
Eligibility – be UK based, have been negatively affected by coronavirus, not been in difficulty on 31st December 2019
(Businesses not eligible: banks, insurers (insurance brokers are eligible), public-sector bodies and state funded primary and secondary schools)
If you have already set up a business interruption loan you have until 4 November 2020 to transfer this to the bounce back scheme. You will need to arrange this with your lender.
Details about the bounce back loan scheme can be found on the British Business Bank website.
Comment from NHBF president Ian Egerton:
“We welcome the bounce back loan which will help many salons and barbershops.
“However, for salons and barbershops in large cities it’s more about survival than ‘bouncing back’. Unfortunately, many businesses in city centres, including my own in London, missed out on government grants because of high business rates which took us above the eligibility threshold.
“The bounce back loan will enable my business, The Stress Exchange, and hopefully others in the same situation, to focus on reopening while rebuilding our income – especially as salons and barbershops may face a drop in takings initially due to the social distancing measures that will probably be continued for a while yet.”