HSBC Banks’s UK business arm HSBC UK has launched Bounce Back Loans Scheme to support small and medium-sized businesses affected by coronavirus (Covid-19) pandemic.
Under the new scheme, which is supported by 100% Government guarantee, the bank is expected to provide lending of between £2,000 and £50,000.
The government will cover first 12 months of interest and fees under the scheme, without needing any repayment. The 6-year loans come with no early repayment charges and 2.5% interest rate is fixed for the life of the loan.
Amanda Murphy, Head of Commercial Banking, HSBC UK said: “HSBC UK is committed to supporting UK businesses during these challenging times and have already provided customers with over £2.3 billion in support to help them through this outbreak.
“We have been working at pace to deliver the Government backed schemes to ensure businesses are getting the funding they need. The Bounce Back Loan Scheme will ensure small business have access to vital financial support and combined with our own initiatives will provide reassurance to businesses over the coming weeks and months.”
Bounce Back Loans scheme is built on the HSBC UK’s package of support
HSBC UK said that it is working closely with the Government and UK Finance to assess emerging issues and enable customers and businesses get the required advice and support.
In addition, the new scheme has been designed based on the HSBC UK’s previously announced package of support for business customers.
The bank’s support package includes an allocated £5bn to help businesses and waiving of £100 Small Business Loan fee for SMEs across the country.
The new Bounce Back Loans scheme will remove informal overdraft fees, offer repayment holidays to free up cash within businesses, prevent all unauthorised overdraft charges, and launch CBILS, CLBILS and CCFF.
The scheme will also help companies involved in the supply and manufacture of ventilators with preferential pricing, extended repayment terms on loans and fast track approval.