What interest rate applies to Bounce Back Loans?

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The Bounce Back Loans scheme offers a fixed interest rate of 2.5 per cent.

The Bounce Back Loans scheme, which commenced on May 4, provides eligible businesses with access to funds ranging from £2,000 to £50,000. A key feature of this initiative is its attractive, flat interest rate of 2.5 per cent. This scheme was introduced to offer financial support to small businesses navigating the economic challenges posed by the coronavirus pandemic.
Loan Amounts and Availability

Businesses can borrow between £2,000 and £50,000 under the Bounce Back Loans scheme. The facility is designed to be accessible, with banks not mandated to conduct credit checks or assess the long-term viability of applicants. This streamlined approach aims to expedite the disbursement of funds to businesses in need.
Purpose of the Scheme

The Bounce Back Loans initiative is intended to ensure that small businesses receive the necessary financing to recover and sustain employment. As stated by Finance Minister Rishi Sunak, these loans are crucial for enabling businesses to "bounce back and protect jobs" during the period of economic recovery following the pandemic.
Transition from Previous Schemes

Companies that have already secured loans of £50,000 or less under the previous 80 per cent state-backed scheme have the option to convert their existing loans to the Bounce Back scheme. This provision allows businesses to benefit from the more favourable terms offered by the new facility.

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What interest rate applies to Bounce Back Loans?

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