With most businesses now either seemingly on indefinite pause or just about managing to trade on a significantly reduced basis, the announcement of the Bounce Back Loan (BBL) facility is a lifeline for small businesses who have slipped through the cracks with the governments other support packages.
The previous grants and scheme’s announced by the government to help small businesses have been great, however, there are still a lot of small businesses left out in the cold and vulnerable. If you’re a small business who has no premesis (or even operates in a co-working enviroment), has no employees, is not VAT Registered, is a sole Director of a Limited Company, or you’ve put all your savings and efforts into starting a business this year, chances are there’s no help on offer for you.
For previous government grants and scheme’s available, please check our previous blog posts here.
But, thanks to the Bounce Back Loan Scheme, announced today, that all changes.
The Coronavirus Business Interruption Loan Scheme was an absolute shambles. If you were eligible for an ordinary banking product, that’s what you’d get. No 12 month’s interest free. There were only initially 40 accredited lenders, which created a massive bottle-neck, so applications took weeks, most of which still have not had a response – or any access to funding, and the lenders also required usual security (such as a Director Personal Guarantee), and also wanted detailed information on you and your business, so applications took an age. This simply wasn’t good enough, with small businesses being ignored and running out of cash fast, whilst the high street banks were rubbing their hands together, selling their products en-masse.
The BBL is different, and seems perfect for the smaller business who need financial help.
For full details see here. Applications should be made direct to the accredited lenders, which are listed on the British Business Bank website here. If your bank is listed, you’re encouraged to apply with them, as it’s easier and quicker.