Bounce Back Loans for small businesses

On Monday 27 April, Chancellor, Rishi Sunak announced a new Bounce Back Loan Scheme (BBLS), aimed at small businesses who have been unable to access other funding and need the vital cash flow injection.

These loans will be fast-tracked, meaning businesses will be able to apply for loans of £2,000 to £50,000 and access the money within days.

The Government will provide lenders with a 100% guarantee for the loan, paying any fees and interest for the first 12 months. This means no repayments will be due during the first year.

The loans are expected to be easy to apply for with a short, standardised online application and will be accessed through a network of accredited lenders. The Government is to work with these lenders to ensure the loans are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.

Due to launch for applications on Monday 4 May, firms applying for the new loans will only have to provide historic financial information to show they were viable prior to the pandemic and not focus on the financial stability post-pandemic.

More information is due over the coming days and we will keep you updated as soon as it’s available. You can find the Government announcement here.

In the meantime, please get in touch with your usual EQ contact or call one of our offices to discuss this, or any other funding.