‘Bounce back’ micro loans
A ‘Bounce Back’ micro loans scheme is available for small businesses seeking funding until the end of March 2021.
The scheme provides loans worth up to 25% of turnover, with a minimum of £2,000 and a maximum of £50,000. They are 100% backed by the government, and no repayments are due for a year after the loan is taken out.
The length of the loan was initially six years, but the government has now extended this to ten years. Recipients may make interest-only payments for six months, with the option to use this up to three times over the duration of the loan. It is also possible to pause repayments entirely for up to six months.
Any business that has taken out a Bounce Back Loan but borrowed less than it was entitled to can top up the loan at a later date. It can be for any amount to the maximum of 25% of turnover or £50,000. Top-ups must be requested by the end of March 2021.
Applications for the loans can be made here.