Coronavirus Bounceback Loan Scheme 05/05/2020

Some more details have been announced regarding the Coronavirus Bounceback Loan Scheme:

ABOUT THE SCHEME

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.

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.

Key Features of the scheme:

  • Loans range from £2,000 up to 25% of a business’ turnover, capped at a maximum of £50,000
  • The scheme provides the lender with a full (100%) government-backed guarantee against the outstanding balance of finance (capital and interest)
  • The borrower remains 100% liable for the debt
  • The Government will make a Business Interruption Payment 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 rate of interest
  • The length of the loan is 6 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

For more information and details of how to apply, visit: 

https://www.british-businessbank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/for-businesses-and-advisors/