Government bounce back loan applications opened this morning

The government bounce back loan applications opened this morning and banks have been inundated with requests. We’re already hearing from marketplace sellers that have applied with some extremely impressed with the simplicity of the application process. However we’re also hearing from some that Barclays, who were hit with 100s of applications – 200 within minutes of opening the scheme – may be struggling and some have been told to come back and apply tomorrow.

It’s already become very obvious that banks are keen to serve their existing small businesses so you might be out of luck if you don’t already bank with one of the banks already open for bounce back loan applications. However if your bank (Bank of Scotland, Barclays, Yorkshire Bank, Danske, HSBC, Lloyds, Natwest, Santander, RBS and Ulster Bank) are running the scheme then filling out a couple of pages of form should see your bounce back loan applications ready for processing and approval a pretty rapid process.

It’s worth noting that there are some conditions:

• Loan value between £2,000 and £50,000
• The Governemnt will cover the first 12 months of interest
• No repayments required for the first 12 months
• Government negotiated interest rate of 2.5%
• Typical loan term of 6 years
• You remain 100% liable for the debt
• You will be ineligible if your business was in financial trouble as of the 31st of December 2019

“Small businesses will play a key role creating jobs and securing economic growth as we recover from the Coronavirus pandemic. The Bounce Back loan scheme will make sure they get the finance they need – helping them bounce back and protect jobs.”
– Rishi Sunak, The Chancellor of the Exchequer

“We are backing small businesses, which are the backbone of our communities, with the support they need to stay afloat. This new scheme of 100% government-guaranteed loans gives owners of even the smallest businesses the confidence and flexibility to borrow a sum which works for them. This will help ensure they can continue to trade, and be a key part of our efforts to reboot the British economy.”
– Alok Sharma, Business Secretary

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