Bounce Back Loans are a response by the government for those that have been able to access CBILS and for whom an injection fo cash is critical.
The key features of these loans are:
- 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 is eligible?
Borrowers will need to declare 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
There is a simple one page form and lenders that are accepting these (and not all are, even if they are accepting CBILS) are taking applications directly via their websites. However, we recommend using a partner platform – we have linked up with Futrli & Swoop, which means we can assist with the application and be confident of a successful outcome. The advantage of using a platform, is that:
- The system will maximise you chance of success, the first time, because it is able to pull on other information easily;
- Even, if the first application is rejected, you don’t need to go through the application process again, the system will do it for you;
If you want help with this, please call on 01970 582008.