Apr 28th, 2020
4 mins
Updated: 04/05/2020 – Small businesses are being recognised by government as the backbone of our economy and can now benefit from a new fast-track finance scheme providing loans with a 100% government-backed guarantee for lenders. This new bounce back loans scheme will provide loans of up to £50,000, this bolstering the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days. Businesses will be able to:
- Borrow between £2,000 and £50,000 and access the cash within days
- Apply for up to 25% of their annual turnover, up to £50,000
- Enjoy the loan interest free for the first 12 months, and businesses can apply online through a short and simple form
- Make no repayments within the first 12 months
- Apply through a short, standardised online application.
- Receive the loan within days therefore providing immediate support to those that need it as easily as possible.
The scheme has been launched today (04/05/2020). Firms will be able to access these loans through a network of accredited lenders. The government will work with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan. BFFF has received extremely good feedback on how the Nat West bank has supported companies in this respect.
The new scheme will run alongside the existing Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS)
This new route for our smallest companies to apply quickly and get a fast decision will be crucial to those who have struggled to get a CBILS loan.
Please see other links to BFFF financial support information:
https://bfff.co.uk/the-coronavirus-business-interruption-loan-scheme-cbils/
https://bfff.co.uk/government-launches-new-covid-19-business-support-finder-tool/
https://bfff.co.uk/covid-19-furlough-workers-and-the-job-retention-scheme/
