Government Announces 'Bounce Back' Loans

The Government has announced a new 100% Government backed loan scheme for small businesses.


Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.


Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans of up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.


  • Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days.
  • Loans will be interest free for the first 12 months
  • No repayments will be due during the first 12 months. 
  • The government has set the interest rate for this loan at 2.5% per annum.
  • Loan terms will be up to 6 years.
  • Businesses can apply online through a short and simple form.

The Scheme will be delivered through a network of accredited lenders and it is recommended you contact your business bank to begin with.



You can apply for a loan if your business:

  • is based in the UK
  • has been negatively affected by coronavirus
  • was not an ‘undertaking in difficulty’ on 31 December 2019.



The following businesses are not eligible to apply:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • further-education establishments if they are grant-funded
  • state-funded primary and secondary schools
  • if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).


Further guidance on how to apply and a list of lenders is given on the British Business Bank Website: