The UK government introduced its bounce back loan scheme in March 2020 just as the coronavirus crisis started to affect the usual operations of many British businesses. Although the scheme is now long-closed to new applications, the initial idea was to offer many companies access to financial support packages of up to £50,000 each. HM Treasury arranged for lent sums to be forwarded on extremely favourable terms to help businesses to survive the pandemic and backed lenders with a 100 per cent level of security.
However, this does not mean that the bounce back loan scheme effectively meant the UK government was awarding grants to businesses through high street lenders. In short, these loans do have to be repaid. Some businesses may need help in how they will repay their bounce back loan depending on their wider financial circumstances. At Salient Insolvency, we offer a wide range of advice with structuring commercial debt of all kinds including bounce back loans.