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: