Lots of people who run businesses have fallen through the gaps of the government support. There has been a furlough scheme introduced which provides 80% of the income of employees, up to £2500. Help for the self employed has come in the form of the Self Employed Income Support Scheme. This has provided a half decent blanket of support but many are still left without any. This is where the BBLS comes into play.
What Is The BBLS?
The BBLS is short for the Bounce Back Loan Scheme. It’s been set up to help small and medium sized businesses gain access to finance during the Covid-19 pandemic. Businesses can borrow between £2000 and up to 25% of their turnover, with the maximum loan amount being £50k.
What’s The Deal?
The loan is completely backed by the UK government and for the first twelve months there is no fees or interest to pay. Let me say that again. NO FEES OR INTEREST TO PAY. After that the interest rate is only 2.5% a year. The loan length is six years, but early repayments can be made without paying a fee. Again, no repayments are due during the first year. Sounds like a great deal if you need to access finance quickly and easily because of this global situation and you’re running a business which isn’t able to get support elsewhere.
Who’s Eligible for the BBLS?
In order to be eligible for the BBLS your business needs to…
- be based in the United Kingdom
- have been established before March 1st 2020
- have been adversely impacted by the Covid-19 pandemic
What Banks Are Lending Via the BBLS?
There are many banks offering the Bounce Back Loan Scheme, including Santander, Lloyds and Starling Bank. There are 11 lenders in all. Whoever you apply with will decide whether to offer you a loan and if they refuse, you can always go to another one of the lenders. Remember, you are responsible for repaying 100% of the loan. The BBLS is a loan, not a grant.
