From 4 May 2020 a number of UK banks are taking part in the government sponsored Bounce Back Loan Scheme (BBLS). This is the name given to the policy announced by Rishi Sunak on 27 Apr 2020 whereby small loans to qualifying businesses are subject to simpler rules than the Coronavirus Business Interruption Loan Scheme (CBILS) and these BBLs are underwritten 100% by the government.
1 of 3 Covid-19 Measures in General
2 of 3 Covid-19 Support For Freelancers
3 of 3 Covid-19 Bounce Back Loans
You cannot apply for a BBL if:
- You’re already claiming under CBILS; or if
- Your business was an “undertaking in difficulty” as at 31 December 2019.
In short:
- There is no cap on turnover for a micro business applying for a BBL;
- Loans will be from £2,000 up to 25 per cent of a business’ turnover or £50,000, whichever is the lower;
- Banks will no longer require forward financials or business plans;
- You should have access to the funds within days;
- Loans will be interest free for the first 12 months; and
- Thereafter the annual rate of interest is capped at 2.5%.
The loans will be easy to apply for through a short, standardised online application, and you will be required to self-certify that you are eligible for a Bounce Back Loan.
The government announcement is here.
A list of participating banks is here and that page will also lead you to a summary page about your bank which leads you to the start of loan application.
Apply directly to your bank. This is a Government initiative and not an HMRC initiative. Consequently, Proactive can not apply on your behalf.