In a welcome boost, small businesses owners can get from £2,000 to £50,000 “within days” from the Government’s brand new Bounce Back Loans scheme.

On 27 April 2020, Chancellor Rishi Sunak announced the new scheme, adding to the existing support for small businesses affected by coronavirus.

The Government is giving accredited lenders a 100% guarantee for the loans, and aiming to deliver loans through this scheme as quickly as possible.

What’s available?

You can borrow between £2,000 and £50,000, with a cap of 25% of your annual turnover.

The Chancellor stated you can get the cash “within days” but the scheme won’t open until Monday 4 May 2020.

Are you eligible?

You can apply for a loan if your business:

  • is based in the UK
  • has been negatively affected by coronavirus
  • was not an ‘undertaking in difficulty’ on 31 December 2019

PSC contractors will be eligible, as will most one-man limited companies. We know you’ve been left behind by the Government’s COVID-19 support measures so far, and this is your opportunity to access some much needed funds to ensure your business survival beyond the lockdown.

Are the loans interest-free?

No, but for the first 12 months, you won’t pay any interest and you won’t have to make any repayments.

You won’t pay an arrangement fee or early repayment charges – the Government will cover any fees as well as your interest for the first 12 months.

The Government is negotiating with lenders to make sure that for the rest of the term of the loans, borrowers pay a low standardised rate of interest.

How do you apply for a Bounce Back Loan?

The scheme will open for applications on Monday 4 May 2020. To apply, you’ll fill in a short online form.

Where can you get a Bounce Back Loan?

The scheme will be available through a network of accredited lenders and, as with CBILS, we are recommending the first port of call should perhaps be your existing business bank.

What can you use the loan for?

As far as we can see, so far there is no restriction on the use of the loan, and we see it as being sensible to use this as a contingency fund. Remember that there are no charges, interest or repayments required in the first year. 

If your business is in financial difficulties at the moment, then having access to the funds may be the lifeline you need until the crisis is over and your business is back earning.

Alternatively, if your business is not yet feeling the effects of lockdown, is not yet in financial distress, but it could be in the next few months, then having up to 25% of your turnover sitting in the bank could provide you with the buffer you need to keep going. If you don’t need it, don’t use it, and pay it back before the interest charging period starts.

How can Acumenica help?

Until more details are released, we don’t really know how much of the process we can help with. We do know that we calculate how much you’ll be eligible for and how much you might need (your cash runway) which is an essential part of any application. We’re told that the application process should be simple but we have our doubts about we’ll beagle to help in the process too.

Join the conversation

How is the Coronavirus affecting your business? We ‘d love to hear from you. Please join our Facebook group to share your experiences, and get some help from your peers and our experts.

If you’d like to be kept informed about the Bounce Bank loans and how Acumenica can help you, please email with the subject line: Bounce Back Business Loans and we’ll get back to you.

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