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.
- Loans Range from £2,000 to £50,000
- 100% Guarantee provided by HM Government to the lender
- Maximum loan – 25% of turnover
- Apply via newly created “streamlined” online standardised application process with bank or lender
- Interest charges covered by government for first 12 months
- No repayments during first 12 months
- Interest rate 2.5%
- Six year term
- No early repayment fees (minimum repayment £2K)
- No personal guarantee (PG)
- If sole trader/partner – cannot affect personal home and car
- No forward viability test or proof of ability to repay
- Loans available through a network of accredited lenders
- No restriction on the total amount of the facility to cover refinancing
- Cannot apply if you have had CBILS. However, if you have already received a loan up to £50,000 under CBILS and would like to transfer it to the Bounce Back Loan Scheme, you can arrange this with your lender until 4th November 2020.
- Assessed ‘in a matter of days’
- You (the business) remains 100% liable for the debt
- is based in the UK
- has been negatively affected by coronavirus
- Whether or not the business was, on 31 December 2019, a “business in difficulty” and if it was a “business in difficulty” then it must confirm it does not breach de minimis State aid restrictions and will not be used to support export-related activities.
- At the time of submitting their loan application, the business is neither in bankruptcy, debt restructuring proceedings, liquidation or similar.
- More than 50% of the income is from trading activity
More information available here.