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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 ÂŁ19billion worth of financial support.

Let’s break this down into bitesize chunks.

What is a Bounce Back Loan?

A Bounce Back Loan is a form of financial support actioned by the government in light of the COVID-19 pandemic. It is designed for those businesses which are experiencing cash flow problems, or losing revenue, as a direct result of COVID-19 and its associated social and economic restrictions on the global marketplace.

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, such as Barclays, Bank of Scotland, NatWest, Santander and most recently, Metro Bank, just to name a few.

What sort of lending terms are available through the BBLS?

A loan under the BBLS is on a 6-year term but can be paid back earlier, and without the borrower being subject to early repayment fees. Lenders can provide anything from £2,000 to 25% of the business’ turnover but are capped at a maximum loan of £50,000.

accounting services for limited companies 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.

Who is eligible for the Bounce Back Loan Scheme?

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:

How do I apply for a Bounce Back Loan?

The BBLS application process requires just a few simple steps:

The pros and cons of the BBLS

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.

The good
The bad
The ugly

Now you’ve had all the information from both sides of the fence, where do you stand on the Business Bounce Back Loan Scheme? Let us know in the comments or come and join the conversation on social media using the links below.

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.

About The Author

Stephanie Whalley

Serial snacker, compulsive cocktail sipper and full time wordsmith with a penchant for alliteration, all things marketing and pineapple on pizza.

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