“Bounce Back Loan” vs “Coronavirus Business Interruption Loan”

11 May 2020
Darryl Brown
coronavirus pet sitting dog walking

The UK government has announced two schemes to help you keep your pet care business going during the COVID-19 crisis. They are the Bounce Back Loan and the Coronavirus Business Interruption Loan.

They are very similar so you might be asking: “Which one is right for my pet care business?”

Same but different

Both schemes are designed to make it easier for small businesses to get loans. To be clear, neither of these schemes offer grants. You will need to pay this money back eventually.

The key difference between the schemes is the amount of money you can borrow and the amount the government will guarantee.

Bounce Back Loans are 100% state-backed but offer smaller amounts.

Coronavirus Business Interruption Loans offer larger amounts but are not 100% state-guaranteed.

Bounce Back Loan Key Features

  • Borrow between £2,000 and £50,000
  • No interest for 12 months
  • 2.5% fixed after 12 months
  • Repay early without penalty
  • Up to six years to repay
  • Loans are unsecured

Coronavirus Business Interruption Loan Key Features

  • Borrow up to £5 million
  • No interest for 12 months
  • Up to six years to repay
  • Partial government-backing. The borrower remains 100% liable for the debt.
  • Personal guarantees not required for amounts below £250,000

Further Reading

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