Bounce Back Loans (BBL) were introduced by the Government last year in response to the COVID pandemic to help smaller sized businesses access finance more quickly.
The scheme allows small and medium sized businesses to borrow between £2k and up to 25% of their turnover. The maximum loan available is £50k.
The loan is guaranteed by the Government and is interest free for the first 12 months. Following this interest is charged at 2.5% per annum and the loan is for a 6 year period.
Full details of the eligibility criteria can be found at HERE
The scheme is open to applications until 31st March 2021.
It is important to note that if you have already borrowed money under the BBL but it was less than you were entitled to, you can top up your existing loan to your maximum amount. This must be done by the 31st March 2021.
Another important change to the scheme is the support being offered with regards to repaying your BBL.
You now have the following options:
Switch to temporary interest only payments up to 3 times, each lasting up to 6 months
Take a single payment holiday, pausing all repayments for 6 months
Extent the loan term from 6 to 10 years (at the same interest rate of 2.5%)
If you have any queries, please do not hesitate to contact your usual Drummond Laurie contact.