How much can small businesses borrow under the new scheme?

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Small Businesses Can Borrow Up to £50,000 Under New Government Scheme

Small businesses and sole traders in the UK can now borrow between £2,000 and £50,000 through the new government-backed "Bounce Back Loans" scheme. This initiative aims to provide crucial financial support to smaller companies navigating the economic impact of the coronavirus pandemic.
Loan Amounts and Interest Rate

The Bounce Back Loans allow eligible businesses to secure funding ranging from a minimum of £2,000 up to a maximum of £50,000. These loans are offered at a competitive flat interest rate of 2.5 per cent. This fixed rate simplifies the cost of borrowing for businesses, providing a predictable financial commitment during uncertain times.
Simplified Application Process

A key feature of the Bounce Back Loans scheme is the streamlined application process. Banks administering these loans are not required to conduct credit checks on applicants, nor are they mandated to assess the long-term viability of the businesses seeking funds. This approach is designed to expedite the disbursement of emergency cash to businesses that may face difficulties securing traditional financing.
Transition for Existing Loan Holders

Firms that have previously accessed loans of £50,000 or less under the earlier 80 per cent state-backed scheme have the option to switch their existing loans over to the new Bounce Back scheme. This provision allows businesses that may have already taken steps to secure financing to potentially benefit from the more accessible terms of the Bounce Back Loans.

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How much can small businesses borrow under the new scheme?

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