The Bounce Back Loans Scheme (BBLS) is set to launch today 4 May and I wanted to give you a heads up so you’re first in line to apply.
Get up to £50,000 from your bank at 2.5% interest rate with a 12 month repayment holiday
If you set aside some time this morning (Monday 4 May) to be one of the first to apply:
Search online for “Bounce Back Loans” and your bank name to find the application form.
Why the rush? In normal times, all banks together approve around 20,000 businesses per month for overdrafts and loans. We expect that as many as 300,000 businesses may apply for BBLS, so being first in line may help get a loan swiftly.
We have no control over how banks prioritise applications but I hope that applying early increases your chances of getting funds faster.
If you need more than £50,000 to weather the crisis, consider if CBILS or BBLS is right for you
Businesses looking to borrow more than £50,000 can apply for the Coronavirus Business Interruption Loan Scheme (CBILS).
- BBLS loans are from £2,000 to £50,000, while CBILS loans are £50,001 to £5M
- BBLS terms (2.5% per annum interest rate and 12 month repayment holiday) are set by the government, while CBILS terms are set by the accredited lenders. It appears that BBLS loans are cheaper and have a longer repayment holiday than most CBILS loans
- It looks like you won’t be able to have loans from both schemes at the same time. This isn’t fully clear yet, we are working to verify and will update once we have the details
- You can convert a CBILS loan into a BBLS loan until 4 November 2020
If you need more than £50,000, you may want to consider a CBILS rather than a BBLS.
The most important thing is that you have the funding you need, as quickly as possible. Let us know if we can help you with anything else in relation to your business.