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If you`re a small business owner struggling to make ends meet during the Covid-19 pandemic, you may be eligible for a bounce back loan agreement.

What is a bounce back loan agreement?

A bounce back loan agreement is a government-backed loan that is designed to support small businesses during the Covid-19 pandemic. These loans are intended to help businesses affected by the ongoing pandemic to manage their cash flow, pay staff, and keep their business running.

How much can you borrow?

You can borrow between £2,000 and £50,000 under the bounce back loan scheme, which is backed by the UK government. The government guarantees 100% of the loan, meaning that if you default, the government will cover your repayments to the bank or lender.

What are the benefits of a bounce back loan agreement?

There are several benefits to taking out a bounce back loan agreement. Firstly, the application process is relatively straightforward and can be completed online. You don`t need to provide any collateral or security, and the loans are interest-free for the first 12 months. In addition, you can repay the loan early without incurring any penalties.

What are the eligibility criteria?

To be eligible for a bounce back loan agreement, you must meet the following criteria:

– Be a UK-based business

– Have been trading as of 1 March 2020

– Have been adversely affected by the Covid-19 pandemic

How do you apply?

To apply for a bounce back loan agreement, you will need to approach a bank or lender that is accredited under the scheme. You will need to provide evidence that your business has been adversely affected by the pandemic, such as a decline in revenue or increased costs.

In conclusion, a bounce back loan agreement can be a lifeline for small businesses struggling to survive during the Covid-19 pandemic. If you`re considering taking out a loan, make sure to read the terms and conditions carefully and seek professional advice if necessary.