Take Advantage of the Government Bounce Back Loan
In an effort to provide support for small- and medium-sized businesses during the Coronavirus pandemic, the Government has announced a Bounce Back Loan Scheme (BBLS). The scheme has been designed in the hope that it will aid businesses in their recovery from any temporary closures or adjustments to operations that have had to be made during this period of lockdown, and help smaller businesses to get back on their feet once their doors can reopen.
Any small- or medium-sized business is welcome to apply for the support, as long as the business:
– is based within the UK
– was established before 1st March 2020
– has been adversely impacted by the coronavirus pandemic
Loan amounts can vary from £2,000 up to 25% of a business’s annual turnover, which is capped at £50,000. There will be no interest applied within the first 12 months, after which the interest rate will be 2.5% per year.
The loan is borrowed over 6 years, but businesses are welcome to repay their loan early and will not be subjected to any additional fees. There will also be no repayments scheduled within the first 12 months.
Whilst the scheme has been designed to help as many businesses as possible in their recovery from the pandemic, some restrictions do apply. Businesses within the following sectors unfortunately will not be eligible:
– Banks, insurers and reinsurers (not including insurance brokers)
– Public sector bodies
– State-funded primary and secondary schools
Those who have also claimed other funding under the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), or the COVID-19 Corporate Financing Facility, are also exempt from any entitlement under the Bounce Back Loan Scheme.
Businesses who are eligible to receive support through the Bounce Back Loan Scheme are invited to approach one of the 20 participating lenders in order to make their application. The lenders currently participating in the scheme include:
AIB, Bank of Ireland UK, Bank of Scotland, Barclays Bank, Clydesdale Bank, Danske Bank, HSBC UK, JCB Finance, Lloyds Bank, Metro Bank, NatWest, Santander, Skipton Business Finance, Starling Bank, The Co-Operative Bank, The Royal Bank of Scotland (RBS), Tide, TSB, Ulster and Yorkshire Bank.
The lender will then talk you through your options and decide whether or not to offer the loan, or perhaps another type of finance. You will be responsible for repaying 100% of the amount borrowed. Find out more.
At VWM, we’re delighted to see that many of our clients are receiving the support they need via this scheme to get their operations back up and running. The Bounce Back Loan Scheme has not only helped many to recover some of the losses experienced during lockdown, but it has also provided business owners with the freedom to make investments into new technology or equipment and general business development to give them the best possible chance of ‘bouncing back’ after a particularly tough year.