Last chance to secure a Bounce Back loan for your small business

The government’s Bounce Back loan scheme will only run for another six weeks. Act now if you need to take advantage of it.

Rishi Sunak © LEON NEAL/POOL/AFP via Getty Images
Chancellor Rishi Sunak has extended the Bounce Back scheme until 30 November
(Image credit: © LEON NEAL/POOL/AFP via Getty Images)

Any small business that thinks it might need a Bounce Back loan from the government’s flagship business-support scheme should get a move on. In theory, the scheme runs for another six weeks or so. Chancellor Rishi Sunak has just extended it until 30 November. In practice, the banks that administer Bounce Back loans are making it harder for many firms to claim this support.

The loans offer an attractive deal to small firms looking for finance to cope with the pandemic. Loans are interest-free in year one and then charge 2.5% for the rest of the term, up to a maximum of ten years. Even businesses not currently in need of finance should consider taking out a loan as a buffer against problems that may emerge in the months to come. If the money is not needed, it can be paid back within the first 12 months at no cost.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.