Yesterday morning [Monday 27 April] saw the Chancellor announce a Bounce Back Loans scheme for SMEs. This will enable such businesses to benefit from a new fast-track finance initiative that will provide loans with a 100% Government-backed guarantee for lenders.
HMRC’s official guidance can be found here, albeit with limited detail: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan.
The scheme will open for applications in less than one week on Monday 4 May and businesses will be able to access these loans through a network of accredited lenders.
Further detail is to be issued, but for the moment we understand that:
You can apply for a loan if your business:
Businesses that cannot apply for this funding include:
The idea behind the Bounce Back Loans scheme is to bolster the existing package of support available to the smallest of businesses affected by the Coronavirus pandemic. The hope is that this will provide vital cash injections in a matter of days so that businesses can continue to operate.
The Government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible.
As further details are released, we will continue to keep you updated.
For more information, please contact your Champion advisor.
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