Coronavirus Bounce Back Loan Scheme
After criticism of the Coronavirus Business Interruption Loan Scheme (CBILS), which has only supported 8,638 businesses to date, the government announced the Bounce Back Loan Scheme (BBLS).
This new scheme went ‘live’ on Monday 4 May and within two days already proved far more popular, with 100,000 applications being made in a single day.
The BBLS offers loans of between £2,000 and £50,000 (up to 25% of a business’s annual turnover) to companies of any size. The loans carry an interest rate of 2.5% and can be applied for using a short online form. The government will cover interest and fees for the first year, after which repayment begins. The government will also cover the cost should a business default.
Banks are reporting that the average loan is around £30,000 and it’s anticipated that £3.3bn will have been handed out on Monday alone.
The application deadline for this scheme is 31 March 2021.
Your business must be based in the UK and have been negatively affected by coronavirus.
The following businesses are not eligible to apply:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
You also cannot apply if you are already claiming under CBILS.
How to apply
The scheme is being delivered through a network of accredited lenders and you should approach a specific lender direct to apply.
More details of how to apply can be found here.
Duncan & Toplis is here to support businesses and we hope we can provide clarity on these important changes as they are announced. For the very latest advice for your organisation, please contact our team.
You can find a full, regularly updated list of measures to support businesses throughout the coronavirus pandemic here.