Bounce Back Loan Scheme (BBLS)
It really is as the name suggests a scheme which has been launched for small businesses who are struggling to access coronavirus funding quickly enough.
This may be a vital lifeline for some businesses which have fallen through the net with the other coronavirus funding schemes.
So How does it work?
Who is eligible?
You can apply for a loan if your business:
Businesses from any sector can apply, except:
Can I apply for the BBLS and the other Coronavirus Loan Schemes?
If you’ve already received a loan of up to £50,000 under any of the following:
you can transfer it into the Bounce Back Loan scheme. You have until 4 November 2020 to arrange this with your lender.
You cannot apply for the BBLS if you are already claiming under any of the above, it is one or the other.
How to apply?
To apply, you’ll need to contact a participating bank directly and fill in a short online questionnaire. All banks are charging the same 2.5% annual interest. (after the first initial 12 months at 0%)
You will need some details to hand when filling in your application. You’ll need details of your annual turnover, account number, the amount you wish to borrow, a copy of your tax return and you also to confirm that your business has been adversely impacted by coronavirus.
The key thing to remember is that these loans are exactly that, they are loans and do need to be paid back. They are not grants like the furlough scheme or Self-Employment Income Support grants. All businesses that take out a bounce back loan are responsible for repaying any facility they may take out. No business will be required to make a repayment during the first 12 months of the loan, giving them time to get back on their feet.
As it is a loan it is likely to go on your business credit report.
It is vital to maintain cash-flow forecasts to ensure you know the cash position of your business now, and for at least the next 12 weeks. Ideally, we would recommend 12 months.
If you would like to discuss how to keep your business accounts up to date and reviewing cash positions please do get in touch.
The first step in working together with us is to book a 15 minute Discovery Call with one of our Client Coordinators to find out whether we'll be a good fit for you and your business.Book a Discovery Call
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