Updates on funding and assistance
So, the Bounce Back Loan Scheme (BBLS) seems to have bounced back! For months it was impossible to apply for one, I know, as we were trying to get one for my husband’s business. Well now, we have applied for one! Hoorah! So, how good are they and why should you take one?
The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year. The length of the loan is 6 years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.
The terms of this loan are incredibly favourable for any small business needing to raise finance during these uncertain times. Understandably some small businesses are facing cash flow problems so this loan would certainly help to bridge the gap until the economy starts to pick up. It is also a wonderful opportunity to make an investment in your business so that you are positioned properly for recovery. One word of warning though, this loan should only be applied for with a plan in mind and even with it some businesses are going to struggle to survive in this current climate. And remember, the loan should also only be applied for if your business has been adversely affected by the Coronavirus which many have!
The scheme is open to applications until 31 January 2021. If you already have a Bounce Back Loan but borrowed less than you were entitled to, you can top up your existing loan to your maximum amount. You must request the top-up by 31 January 2021.
If you’d like any further help with BBLS and how to apply please do get in touch with me.