Bounce Back Loan Scheme (BBLS)
As per the announcement by Chancellor, Rishi Sunak, last week Monday, approved banks has launched yesterday the Bounce Back Loan Scheme (BBLS) for its clients to support them during the current Covid-19 pandemic.
The new loan scheme is a different offering from the current CBILS product, and aims to support clients with their borrowing needs from £2,000 up to £50,000, which are 100% guaranteed by the government.
Details around the product and application are stated below:
- Available to a UK based business that was established before 1 March 2020 and has been adversely impacted by Covid-19.
- The lending request cannot exceed 25% of 2019 total turnover.
- £2,000 to £50,000.
- 6-year BBLS term.
- The interest in year 1 does not roll up, therefore, the capital will be repayable over a 5-year term (6-year loan with a 12-month capital repayment holiday).
- The business remains liable for the repayments of the capital.
- 2.5% fixed interest rate.
- No arrangement fee.
- Approval in 48 hours
- If a business was in the process of applying for a CBILS product between £25,001 – £50,000, the banks will be directing them to complete the online application for BBLS.
- If a business already has a CBILS, they cannot apply for a BBLS unless their original loan will be refinanced in full by the new BBLS.
- The minimum CBILS amount has gone up from £25,001 to £50,001 with the introduction of BBLS.
Please get in touch with us for further information on the Bounce Back Loan Scheme