The Bounce Back Loan Scheme (BBLS) provides financial support to businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak and that can benefit from £50,000 or less in finance.
Businesses will be able to borrow between £2,000 and £50,000 equating to 25% of turnover and access to the cash should be available within 24 hours. The Scheme is open for applications until 4 November 2020, but may be extended further.
- Loans will be interest free, with no fees nor repayments payable for the first 12 months.
- Online applications are due to open on Monday 4th May.
- The loans will be accessed through a network of accredited lenders.
- Companies who have received bailouts elsewhere from the Government, either through grants from local authorities or tax holidays, will still be able to apply for the new loans.
- Those who have already received a payment via CBILS can transfer the loan to the new Bounce Back scheme.
The scheme is a part of a wider package of government support for UK businesses and employees. Read more at the Government’s Business Support website.
HOW IT WORKS
BBLS lenders can provide a six-year term loan from £2,000 up to 25% of a business’ turnover. The maximum loan amount is £50,000.
The scheme gives the lender a full (100%) government-backed guarantee against the outstanding balance of the facility (both capital and interest).
The borrower always remains fully liable for the debt.
KEY FEATURES OF THE SCHEME
FIND OUT MORE
The loans are easy to apply for through a short, standardised online application. The loan should reach businesses within days- providing immediate support to those that need it as easily as possible.
To see which lenders are accredited to provide Bounce Back Loans, click HERE.
To find out more about other sources of support for businesses provided by the UK & Scottish Governments, click HERE.