The government has announced a new Bounce Back Loan Scheme (BBLS) for small to medium sized businesses. The details are as follows:
- Businesses will be able to apply from 9am on Monday 4 May;
- Loans available for 25% of turnover up to a maximum of £50,000;
- Minimum loan of £2,000;
- No forward looking test on viability;
- Quick standard form to complete;
- No fees or interest to pay for first 12 months;
- No payments to be made in the first 12 months;
- You cannot claim under the Coronavirus Business Interruption Loan Scheme (CBILS) and the BBLS;
- However, if you have already received a loan of up to £50,000 under CBILS you have until 4 November 2020 to arrange with the lender to transfer it to the BBLS;
- The loans will come through the 40 or so accredited lenders;
- Loans will be up to 6 years;
- The Government have agreed a flat rate of interest of 2.5% with the lenders;
- Loans should arrive within 24 hours of approval;
- The loans are 100% Government backed; and
- To be eligible you must
- Be a UK based business
- Have been negatively affected by the coronavirus issue
- Not have been in difficulty as at 31 December 2019.
If you wish to apply for loan please get in touch and we will see if we can be of assistance.
To get more information on the loan, please visit the Bounce Back Loan pages of gov.uk.