As per the reports, the Bounce Back Loans Scheme has gone live for applications. Smaller businesses can now apply for quick and easy-to-access loans from today.
This latest initiative has been taken by the government to support local businesses during the coronavirus crisis. Announced by Chancellor Rishi Sunak on 27th April, the scheme offers loans via banks of between £2,000 to £50,000. The loans accredited by the British Business Bank target small and micro businesses in all sectors.
The loans have an interest rate of 2.5% available on terms of up to six years. However, there will be no interest charged in the first 12 months of the loan(s). Business owners can payback loans at any time without receiving a penalty.
Business should be based out of UK (activity) and established by 1 March 2020.
Owners need to confirm that their businesses have been impacted by COVID-19.
Business should not be a part of a government-backed Coronavirus loan scheme while applying.
Owners need to confirm that their businesses are not a part of bankruptcy, liquidation or undergoing debt restructuring.
The eligible businesses are also subjected to standard AML and KYC checks, including customer fraud prior to any loan being made.