We have now entered into the 3rd Lockdown and the Government has acknowledged the impact by announcing new Financial Aid via different schemes. The nature of this support to businesses is implemented in many different ways.
Bounce Back Loan Scheme (BBLS)
Many business owners are familiar with Bounce Back Loan since early 2020. This scheme has been revised and updated few times. This is the latest revised version announced in January 2021.
Key features
- This scheme is now extended until 31 March 2021.
- It’s a six-year term loan from £2000 up to 25% of a business’ turnover to a maximum of £50’000.
- The scheme gives the lender a full (100%) government-backed guarantee against the outstanding balance of the facility (both capital & Interest) however the borrower always remains fully liable for the debt.
- The first 12 months repayments are covered as the government will make a Business Interruption Payment (BIP) to cover the first 12 months of interest
- The interest rate set at 2.5% per annum.
Eligibility
- Impacted by Covid-19
- The business was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)
- Engaged in trading or commercial activity in the UK and was established by 1 March 2020
- Not claimed these schemes
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Large Business Interruption Loan Scheme (CLBILS)
- Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility
- Not in bankruptcy or liquidation at the time it submits its application for finance
- Generates more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges)
- Is not in a restricted sector
- Credit institutions (falling in the remit of the Bank Recovery and Resolution Directive)
- Insurance companies
- Public-sector organisations
- State-funded primary and secondary schools.
How to apply
- Find a lender see this link
- Approach a lender
- The lender makes a decision
Under the scheme, lenders are not permitted to:
- take any form of personal guarantee
- take recovery action over a borrower’s personal assets (such as their main home or personal vehicle)
For more assistance on this matter contact Sterling Finance and we will be able to help.
Our contact details are:
Sterling Finance UK Limited
Website: www.sterlingfinance.net
Email: info@sterlingfinance.net
Tel: 0161 339 4989
