The Bounce Back Loan Scheme (BBLS) opens for applications today.
- Businesses can borrow between £2,000 and £50,000, capped at 25% of turnover, with no fee to access the scheme
- The Government will guarantee 100% of the loan and there will not be any fees or interest to pay for the first 12 months
- Loan terms will be up to 6 years and no repayments will be due during the first 12 months
- Interest rates will be capped at 2.5% per annum
- Lenders are not permitted to take personal guarantees or recovery action over a borrower’s personal assets (such as their main home or personal vehicle).
To be eligible for the scheme, a business must be based in the UK, have been negatively affected by coronavirus (COVID‐19), have been trading on 1 March 1 2020, and not have been an ‘undertaking in difficultly’ as of 31 December 2019.
To apply, companies should approach a lender via its website and fill in the short online application form to self‐certify that they are eligible for a loan. You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS); however, if you would like to transfer your CBILS loan into the BBLS, you can arrange this with your lender until 4 November 2020.