You are here: Home - Credit Cards & Loans - News -

Last chance to apply for a Bounce Back Loan

0
Written by:
30/03/2021
Businesses have just one day left in order to apply for a Bounce Back Loan.

The loan scheme was launched last year to support businesses cope with the impact of the pandemic, and has been enormously popular. According to the latest figures from the Treasury, three Bounce Back Loans have been issued every minute since their introduction in May 2020, with almost £180bn in funding provided through the scheme.

The scheme has not been without its controversies however. Some lenders have used the loan scheme as a way to push businesses into opening business accounts with them, while significant levels of fraud mean that the scheme is likely to cost the taxpayer billions

What can I get with a Bounce Back Loan?

The Bounce Back Loan was designed to help small and medium-sized businesses, allowing them to borrow up to 25% of their turnover. This is capped at a maximum loan size of £50,000.

There is no interest to pay for the first 12 months, nor any fees. After a year, interest starts being charged at 2.5% per annum.

Loans last for six years, but can be repaid early without any additional fees to worry about. Before you start making repayments, your lender will contact you to ask if you want to extend the term of the loan to 10 years, take up making interest-only repayments for six months, or pause your repayments for six months.

Bounce Back Loans are provided by 29 different lenders, including many of the big high street names. You can apply to these lenders directly ‒ you’ll have to fill out a short form and self-declare that you are eligible for the scheme.

The loan is entirely guaranteed by the government, ensuring that if you can’t keep up with your repayments the lender won’t lose out.

Time is running out

Applications for a Bounce Back Loan close on 31 March, so you’re almost out of time to take advantage.

Importantly, if you already have a Bounce Back Loan but didn’t take out the full amount you could qualify for, then you can top it up to this maximum amount. Again, you must apply for this top-up by the end of the month.

Who is eligible for Bounce Back Loans?

You will need to meet certain criteria in order to qualify for a Bounce Back Loan. These include:

  • Your business must be based in the UK
  • Your business must have been established before 1 March 2020
  • Your business must have been adversely impacted by the pandemic

Businesses can apply for a Bounce Back Loan so long as they are not banks, insurers and reinsurers, nor public-sector bodies, while you also cannot apply if you’re already claiming other forms of government support such as the Coronavirus Business Interruption Loan Scheme or the Coronavirus Large Business Interruption Loan Scheme.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Privacy Preference Center

Necessary

Advertising

Analytics

Other

Read previous post:
pic of a clock face at five to pound sign
Time running out to apply for Covid payment holidays

Borrowers have just one day left to take advantage of payment holidays on a range of credit products.

Close