One of the latest Government initiatives to be launched to help businesses and their owners is the bounce back loan scheme (BBLS). The scheme is designed to allow provide quick access to funds for SMEs affected by the coronavirus situation. To apply for funding, a short form of seven questions needs to be completed online, with the funds then arriving a few days later.
The key features of the loan are:
- Loan amount available of £2,000 up to 25% of the turnover of the business. With a maximum of £50,000.
- Loan term is over 6 years.
- No early repayment fees.
- The Government will pay the first 12 months of fees and interest.
- Rate of interest on the loan is 2.5%.
- Lenders are not permitted to take personal guarantees.
If a business has already taken out a Coronavirus Business Interruption Loan of £50,000 or less, it can apply to have the loan switched over to this new scheme.