‘Bounce back’ micro loans
A ‘Bounce Back’ micro loans scheme is available for small businesses seeking funding until the end of March 2021.
It provides loans of up to 25% of turnover, with a minimum of £2,000 and a maximum of £50,000. They are to be 100% backed by the government, and interest and fees will be paid for the first 12 months. No repayments are due during the first year. The government has promised a simple application process with seven questions, and swift transfers of loans to bank accounts.
In December the government announced that it was extending the scheme until the end of March 2021. The length of the loan is six years, but you can repay early without paying a fee.
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.