Department for Business, Energy and Industrial Strategy set to introduce a new ‘Bounce Back’ loan scheme for small and medium sized businesses in the UK (scheme opens on Monday 4 May)

The Department for Business, Energy and Industrial Strategy (BEIS) is to introduce a new Coronavirus ‘Bounce Back’ Loan scheme for small and medium businesses (i.e. with between 1 and 249 employees) needing financial support during the coronavirus outbreak.

Further Education institutes and charitable companies registered with Companies House should also be able to apply. Loans are not available for public sector organisations, state funded primary and secondary schools, or banks, insurers and reinsurers (insurance brokers are eligible to apply).

The scheme will open on Monday 4 May 2020.

Quick turnaround loans of between £2,000 and £50,00 are available through a network of 40 approved lenders. Loans will be interest free for the first 12 months and BEIS is working with lenders to ensure interest rates for the repayment period beyond the first 12 months are kept as low as possible.

The scheme is designed to complement the Coronavirus Business Interruption Loan Scheme (CBILS) and the Coronavirus Large Business Interruption Loan Scheme (CLBILS).

Eligible businesses for the Bounce Back loan scheme should be:

o Based in the UK.
o Negatively impacted by the coronavirus (COVID-19) pandemic, and
o Not in financial difficulty on 31 December 2019.

Applications can be made online through a short, simple and standardised form and loans should reach applicants within a matter of days.

Further information is available on the GOV.UK website and via the Department for Business, Energy & Industrial Strategy (BEIS) on 0330 331 0020.