Business will have access to a 100 per cent backed government loan in the form of the Bounce Back Loan scheme.

Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days. They can apply for 25 per cent of their turnover up to a maximum of £50,000. The loans will be interest free for the first 12 months and businesses can apply online.

The scheme will launch for applications Monday, May 4, and firms will be able to access these loans through a network of accredited lenders.

Businesses who have applied for the Coronavirus Business Interruption Loan Scheme (CBILS) are not eligible to apply, they can however transfer the loan from CBILS that they have received into the Bounce Back Loan Scheme. This can be arranged with their lender until November 4 2020.

The Chancellor said the new Bounce Back Loans scheme would help bolster the package of support available to small businesses who are so vital to the economy and will be crucial when restrictions are eased.

The government will provide lenders with 100 per cent guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.

The loan can be applied for online from Monday 4 May and should reach businesses within 24 hours of approval. Firms will be able to access these loans through a network of accredited lenders.

The government has already announced that they have provided businesses in the UK with over £15 million in Coronavirus Support and this new scheme will look to build upon the support available to businesses.

Further details regarding eligibility and how to apply can be found at

Although reaction to this new loan scheme has been generally positive from a wider business perspective, some smaller businesses may be hesitant to take out loans and so may be reluctant to apply for this new scheme. Businesses can be risk adverse to the prospect of taking on loans which will require repayment during a long period of uncertainty and financial hardship.

However, a 12-month interest free, government backed loan could provide that cashflow that some business need through these challenging months during lockdown, until their businesses can get back to full trading.

We are here to listen to your business concerns and support you through the times ahead, please call us anytime on 01905 673600, for further information regarding the support and guidance available to businesses please visit our dedicated Coronavirus Information Hub at