Bounce Back Loan Applications

Bounce Back Loan Applications

posted on May 7, 2020

by: Ian Marlow / 0 comments / Business

Bounce Back Loan Applications (BBLS) are now being made to provide fast-track funding support for smaller businesses. The key features of the  scheme 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’s eligible

The Scheme is open businesses, regardless of turnover, who meet the eligibility criteria and who were established on or before 1 March 2020. Borrowers are required to declare that their business is:

  • UK-based in its business activity, and established by 1 March 2020
  • have been adversely impacted by the Coronavirus (Covid-19)
  • not currently using a government-backed Coronavirus Loan Scheme (unless using BBLS to refinance a whole facility)
  • not in bankruptcy, liquidation or undergoing debt restructuring
  • aren’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
    will use the loan only to provide economic benefit to the business, and not for personal purposes

A standard, simple form will be used by all lenders offering loans under the BBLS. and most lenders are taking applications directly via their websites.

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Ian Marlow

Managing Director

Ian Marlow, an Elite Advisor for Quickbooks Online, has a passion for helping individuals and businesses in all aspects of online accounting and leads an experienced team of tax and accounting professionals.
published
7th May 2020
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HfM Tax & Accounts Winner 2019 - HfMTax.
Personal Tax Returns Adviser of the Year 2018 - HfMTax.
2016 Tax Awards Winner - Best UK Personal Tax Service Provider 2016