Small businesses will benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders.
The government has rolled out Bounce Back Loans, a digital loan scheme, to support small businesses with their cashflow in the immediate future.
Launched on Monday 4 May, the scheme fast-tracks funding to SMEs with loans that are 100% government-backed guarantee for lenders. The government will also pay any fees and interest for the first 12 months (no repayments will be made within this time).
Links To Application Forms (More To Follow)
What We Know So Far
- Small businesses will be able to borrow between £2,000 and £50,000.
- Businesses can apply online through a short and simple form
- Businesses will have to apply via their normal online banking portal when their own bank has launched their offering.
- As with Coronavirus Business Interruption Loan Scheme (CBILS), loans will be interest free for the first 12 months.
- Once approved, the cash will be available in days
- Banks will be prioritising customers who need urgent access to borrowing to keep their business going
- Max loan of BBL is now £50,000 and CBILS from £50,001. Businesses will only be able to have one BBL or a CBILS per business.
The British Business Bank has released FAQ’s about BBLS for small business – you can find them here.
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