Starting a new business? Get 40% off our accountancy services for 3 months! 😎
The Bounce Back Loan Scheme (BBLS) is part of the government’s wider finance relief package to support those struggling as a result of the pandemic, to help them stay afloat and eventually get back on their feet.
Since the launch of the BBLS in response to the ongoing COVID crisis, there have already been more than 600,000 borrowers benefitting from nearly £19billion worth of financial support.
Let’s break this down into bitesize chunks.
A bounce back loan is a form of financial support actioned by the government in light of the COVID-19 pandemic. It is available for businesses experiencing cash flow or revenue problems as a direct result of COVID-19.
The list of lenders is still expanding, all of which are British Business Bank (BBB) accredited partners. There are plenty of the big names that you’d expect to see. Barclays, Bank of Scotland, NatWest, Santander and most recently, Metro Bank, are all offering loans under the terms of the scheme.
Bounce back loans were originally issued on a 6-year term that could be paid back earlier, and without the borrower being subject to early repayment fees. The Chancellor’s recent Winter Economy Plan extends the loan period from 6 years to 10. This gives borrowers more time to repay the loan if the need it.
The application period has also been extended. Potential borrowers now have until March 2021 to apply for a loan under the bounce back scheme.
Lenders can provide anything from £2,000 to 25% of the business’ turnover, but are capped at a maximum loan of £50,000.
Interest rates have been made deliberately affordable at 2.5% per annum so that the scheme is fair and accessible to a diverse range of businesses.
The list of those applicable to the BBLS is varied but specific. In order to be accepted for a loan, you must:
…and you must NOT:
The BBLS application process requires just a few simple steps:
Before you rush off to submit your application, stick around to digest some of the advantages and disadvantages that are coming to light around the BBLS. Spoiler alert: fortunately, the pros far outweigh the cons.
If you need more information on the support that’s available to businesses dealing with the impact of COVID-19 check out our support hub, or call us on 020 3355 4047 to find out how our online accountants can help.
Subscribe to our newsletter to get accounting tips like this right to your inbox
Give an overview of the duties, functions and responsibilities of your job. Completing annual accounts, tax returns and VAT returns for clients….
Read MoreThis month we spoke to Alex, the owner of Amplify Brand Consultancy! Amplify Brand Consultancy | LinkedIn Hey Alex! Tell us about your…
Read MoreIf you have your own limited company, you may be aware of director’s loans already, where company directors lend money to the…
Read MoreThe number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?
Please contact our sales team if you’re unsure
It is unlikely you will need this service, unless you are voluntarily registered for VAT.
Are you sure this is correct?
Call us on 020 3355 4047 if you’re not sure.
You will receive our bookkeeping software Pandle for free, as part of your package.
You can use this to complete your own bookkeeping, or we can provide a quote to complete your bookkeeping for you.
Please select and option below:
Call us on 020 3355 4047 if you’re not sure.