The Bounce Back Loan Scheme (BBLS) went live on Monday morning with fast-track funding support for smaller businesses.
Key features of BBLS
- Apply for 25% of turnover up to a maximum of £50,000 (minimum £2000)
- Simple, seven-question application form
- If you’ve already taken out a CBIL up to £50,000, you can apply to switchover the BBLS
- The loans are backed by 100 per cent government guarantees
- The government will pay the interest for the first 12 months and no repayments will be made during this time
- BBLS are for up to six years
- There will be no early repayment fees
- There will be a flat rate of 2.5% interest following the initial 12-month interest free period
Who’s eligible
The Scheme is open to most businesses, regardless of turnover, who meet the eligibility criteria and who were established on or before 1 March 2020. Borrowers are required to declare, amongst other things, that:
- It’s UK-based in its business activity, and established by 1 March 2020
- It’s been adversely impacted by the Coronavirus (Covid-19)
- It’s not currently using a government-backed Coronavirus Loan Scheme (unless using BBLS to refinance a whole facility)
- It’s not in bankruptcy, liquidation or undergoing debt restructuring
- It isn’t a bank, building society, insurance company, public sector organisation, state-funded primary or secondary school, or an individual other than a sole trader or a partner acting on behalf of a partnership.
- On 31 December 2019 the business was not a “business in difficulty”
- More than 50% of the income of the business (together with that of any member of any group of which it is a part) is derived from its trading activity
- It will use the loan only to provide economic benefit to the business, and not for personal purposes
How to apply
A standard, simple form will be used by all lenders offering loans under the BBLS. The majority of lenders are taking applications directly via their websites.
Our teams are working remotely and are able to help. If you have any queries please contact your usual NR Barton Partner or Manager or on the usual lines 01942 242 245 or accounts@nrbarton.co.uk.
We’re here to help
With all the legislative changes and updates over recent days in these ever changing and uncertain times, our teams are briefed and here to help you and your business.
Whilst our physical offices are closed following the ‘lock down’ advice, the team at NR Barton are working remotely from home. If you have any questions you should not hesitate to contact your engagement partner or manager who will be happy to assist; our contact details can be found here.
For anyone unsure of who to contact, we are still answering phones (01942 242245) and we are answering emails to accounts@nrbarton.co.uk.
We’re here to help.
All the best
The NR Barton team
Want to read more of this?
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