On 4 May 2020, the government launched the Bounce Back Loan Scheme which enables smaller businesses to access finance more quickly during the coronavirus outbreak.
The new BBLS has been set-up to allow small businesses adversely affected by COVID-19, to apply for up to £50,000, with the government guaranteeing 100% of the advance.
Small businesses can apply for a minimum of £2,000 and up to a maximum of £50,000, with the government paying the interest for the first 12 months.
You can apply for the Bounce Back Loan Scheme if your business:
- Was established before March 1st, 2020
- Based in the UK
- Has been adversely affected by COVID-19
Businesses from all sectors can apply, except:
- Banks, insurers, and reinsurers
- Public-sector bodies
- State-funded schools
The BBLS is for 6 years, but businesses can repay early without paying a fee. No repayments will be due during the first year.
How to apply
There are 11 lenders participating in the Bounce Back Loan Scheme, this includes many of the main retail banks. You should approach a suitable lender yourself, then you will need to fill in a short application form online. This form self-certifies that your business is eligible for a loan under BBLS.
The lender has the authority to decide whether to offer you finance. If one lender turns you down, you can still approach other lenders within the scheme.
Our comprehensive payroll and corporation tax services take into account all legal requirements to ensure you don’t get caught out. If you are worried about your business’s current financial situation contact us today to discuss how we can help you.