Applications are now open for the Bounce Back Loan Scheme (BBL)
The feedback we have been getting is that businesses do not want to incur debt. This is quite understandable, however this is a scheme you might not want to overlook. The process is straightforward so go online or contact your bank for an application form.
The Bounce Back Loans target small and micro businesses in all sectors, providing loans from £2,000 up to 25% of the business’ turnover with a maximum loan of £50,000.
Lenders are provided with a 100% government-backed guarantee and the standard application form is expected to lead to loans being available within days.
The Bounce Back Loans Scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year. The government will cover interest payable in the first year.
- Up to £50,000 loan: Loans will be from £2,000 up to 25% of a business’ turnover or £50,000, whichever is lower.
- 100% guarantee: The scheme provides the lender with a government-backed, full guarantee (100%) against the outstanding facility balance, both capital and interest. The borrower always remains 100% liable for the debt.
- Interest rate: The government has set the interest rate for this facility at 2.5% per annum, meaning businesses will all benefit from the same, low rate of interest.
- Interest paid by government for 12 months: The government will make a Business Interruption Payment to the lenders to cover the first 12 months of interest payable, so businesses will benefit from no upfront costs.
- No principal repayments for first 12 months: Borrowers will not have to begin principal repayments for the first 12 months, thereafter capital will be repaid on a straight line basis.
- No guarantee fee for businesses or lenders to access the scheme
- Finance terms: The length of the loan is for six years but early repayment is allowed, without early repayment fees.
- No personal guarantees: No personal guarantees are allowed, and no recovery action can be taken over a principal private residence or principal private vehicle.
If you need information for your application or want further clarification on this funding scheme please reach out.
T: 02871 370886 or E: [email protected]