In light of the CVBIL application process turning into a minefield, with less than 1 in 10 of applications being processed in the first 3 weeks, banks asking for pension guarantees and only offering the schemes to existing customers, the chancellor has today announced a new ‘Coronavirus Bounce Back’ Loan, which is 100% guaranteed by the government.
The scheme is due to release next week, on 4th May 2020. Further details of the scheme will be released over the coming week, but what we do know at the moment is:
- Loans can be between £2,000 – £50,000;
- Terms will be for up to 6 years;
- The first 12 months will be ‘interest free’ (the interest is covered by the government), as well as fee free;
- There will be no repayments due for the first 12 months;
- Cash will be available within days; and
- Applications will be through accredited lenders, by way of an online standardised form.
You are eligible if:
- you are a UK business, which is not an ‘undertaking in difficulty’ as at 31 December 2019;
- your business has been negatively affected by the coronavirus; and
- you do not already have a CVBIL loan.
If you already have a CVBIL loan, and it is less than £50,000 this can be transferred by your lender into a bounce back loan as long as it is done before 4 November 2020.
The scheme will be available from 4 May 2020. Official government information is available here.