As of 4th of May 2020, the banks have opened applications for the “Bounce Back” loans for small businesses.
These can be applied to directly via the accredited banks listed at: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/current-accredited-lenders-and-partners
If your bank is not yet accredited for this particular scheme, new banks will be added, along with processes for new customers over the coming weeks.
Summary of the Scheme
- The scheme is a 100% government backed loan initiative for small businesses who haven’t received the other CBILS loans
- Loans are available for borrowing between £2,000 and £50,000 (up to a maximum of 25% annual turnover), with repayments over a period of 6 years
- No repayments (of capital nor interest) are required for the first 12 months, and you won’t pay any charges should you decide to repay early
- Interest rate fixed by the Banks and UK Government at 2.5%
- Simple online application, with funds transferred to your business bank account within days of being accepted
If your bank is not currently on the approved list, existing banks will be adding processes to allow new customers. HSBC is the first bank to offer this service to people who don’t normally bank with them – stating “If you do not already have an HSBC Business Bank Account and do not want to open one, or if you do not want to draw down the loan into your existing HSBC account, we will open a temporary feeder account to use to draw down the loan, and will then arrange with you to transfer the funds to another account in your name at another bank (subject to our standard transaction checks).”
Further information can be found at: https://www.business.hsbc.uk/en-gb/finance-and-borrowing/credit-and-lending/bounce-back-loan-scheme