COVID-19 BRIEFING FOR SME’S ISSUED AT 1430 hrs on 4th MAY 2020

OVERVIEW

This Bulletin gives additional information about the new Government Bounce Back Loan Scheme (BBLS) and its relationship to the Coronavirus Business Interruption Loan Scheme (CBILS)

BBLS and CBILS

Last week we sent advance information on the new BBLS, which has officially launched today (Monday 4th May). The BBLS fast-tracks funding to SME’s with loans that carry a 100% government-backed guarantee for lenders. The Government will also pay any fees and interest for the first 12 months (no repayments will need to be made within this time). In case you missed our previous briefing, here is a quick link to one of our previous blog posts, which carries the briefing, so you can check the details:

https://blog.simpsondeanrecruitment.co.uk/covid-19-briefing-for-smes-issued-at-1815-hrs-on-28th-april-2020

This previous briefing tells you how to switch from CBILS to BBLS, which will be much quicker and easier for most SME’s – and have a lower recommended interest rate of 2.5%

The Scheme in Summary

  • Small businesses will be able to borrow between £2,000 and £50,000.
  • Businesses can apply online through a short and simple form (seven questions only).
  • Businesses will have to apply via their normal online banking portal if their bank is one of the 9 Accredited Lenders (see ‘Links to Application Forms’ below).
  • If your own bank is not shown on the list below you can choose any alternative from those listed but your application may take a little longer.
  • As with the Coronavirus Business Interruption Loan Scheme (CBILS), loans will be interest-free for the first 12 months.
  • Once approved, the cash will be available within days.
  • Banks will be prioritising customers who need urgent access to borrowing to keep their business going.
  • The maximum loan under BBLS is now £50,000 and CBILS from £50,001. Businesses will only be able to have one BBLS or a CBILS per business.

Please note that unlike the CBILS, which is running via 40 Accredited Lenders, the new BBLS currently has only 9 Accredited Bank providers. The Treasury says that more providers may be added at a later date.

Here are links to the current 9 providers’ application forms:

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