Bounce Back Loans Scheme (BBLS) Launches
COVID-19 Support For Business
Bounce Back loans for small and medium-sized businesses affected by coronavirus (COVID-19) can now be applied for. The scheme allows SME’s to apply for loans of up to £50,000
| KEY FEATURES OF THE SCHEME | |||||
| Finance of up to £50,000 | Guarantee to the lender to encourage them to lend | Government pays interest and fees for 12 months | Affordable interest rate | ||
| Loans range from £2,000 up to 25% of a business’ turnover. The maximum loan amount is £50,000. | The scheme provides the lender with a full (100%), government-backed guarantee against the outstanding balance of the finance (both capital and interest).
The borrower remains 100% liable for the debt. |
The Government will make a Business Interruption Payment (BIP) to cover the first 12 months of interest payments.
The borrower does not have to make any repayments for the first 12 months. |
The interest rate for the facility is set at 2.5% per annum, meaning businesses will all benefit from the same, affordable rate of interest. | ||
| Finance terms | Security | No guarantee fees for businesses or lenders | |||
| The length of the loan is six years but early repayment is allowed, without early repayment fees. | Lenders are not permitted to take personal guarantees or take recovery action over a borrower’s personal assets (such as their main home or personal vehicle). | There is no fee to access the scheme for either businesses or lenders. |
How business can apply for the scheme: How to Apply
Current List of accredited lenders: Accredited Lenders
In taking out any loan funding you must consider you ability to make the repayments as and when they fall due. If you need any assistance looking at cash flows, please let us know.
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