The Chancellor announced on Monday, April 27th, a new loan scheme for small businesses which in theory should be easier to obtain than the Coronavirus Business Interruption Loans (CBILS).

The coronavirus Bounce Back Loan Scheme (CBBLS) will help small and medium-sized businesses affected by ‘you-know-what’ to apply for loans of up to £50,000.  The government is providing a 100% guarantee to the banks under this scheme so there is no reason why any bank should reject applications, if eligibility criteria is met. The maximum loan under the scheme is the lower of £50,000 or 25% of turnover, and the only criteria seem to be that

• the business is based in the UK (of course!  Why should UK taxpayers supports non-UK businesses?!), and
• the business must have been financially sound (they use the phrase “not an undertaking in difficulty” *) as at 31 December 2019, and 
• the business has been adversely affected by the coronavirus pandemic.

The loans will be interest free for the first 12 months and there will be no arrangement fees.

The scheme will be available from Monday, 4 May. 

Read more about the scheme here: https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

PS: You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).  BUT, with the blessing of your lender, you could transfer your loan (if under £50k) into the CBBL scheme.