Just a quick update on the new Bounce Back Loan Scheme (BBLS). This is a new easy to access loan scheme launched by the government to help businesses affected by the coronavirus pandemic.
What we know so far:
The scheme has been launched today but the portals are having problems due to the volume of applications
• The new loans will be from £2,000 and £50,000.
• Any business can apply for loans worth up to 25% of turnover.
• If a limited company then the applicant business will need to have been incorporated from 1 March 2020.
• The loans are interest free for the first 12 months with no repayments during that period.
• Interest will be charged at 2.5%
• Loan terms will be up to 6 years, early repayment will be possible with no early repayment charges.
• There are no restrictions on what the loans can be used for and personal guarantees will not be taken.
You cannot apply if you have already taken out a Coronavirus Business Interruption Loan Scheme loan, although you can apply for it to be transferred.
• The cash should become available within days of applying.
• The portal has now opened but please expect delays as there is bound to be a huge demand the portal should provide the details of all the lenders involved in the scheme.
• Several lenders have links taking you straight to the application and this may be quicker, for your assistance a few links are listed below. You do not have to use your current bank.
We are aware that there are problems on these sites and they are not designed to take certain information, the sites are currently being adjusted and should be up and running later this morning so please don’t ring us for an update but if you need to contact us, please email. Secondly, the application does require certain information including turnover so please obtain this from your latest accounts prior to going on to the system. We can of course supply this but we have already received many phone calls asking so please try and obtain it from your records first, even if it is easier to pick up the phone! If you can’t find it then please e-mail us and we shall reply asap.