Chancellor Rishi Sunak announced that the deadline for applying for a coronavirus repayment loan has been extended until the end of November. The Bounce Back Loan Scheme (BBLS) is a new scheme recently announced by the Treasury and the British Business Bank to support UK businesses by providing loans of between £2,000 and £50,000
What is a Bounce Back Loan Scheme?
The Bounce Back Loan Scheme allows companies to obtain a six-year loan at a rate set by the government. It allows small businesses to borrow up to £50,000, with a 100% government guarantee and 5% interest.
If you miss repayments under the Bounce Back Loan Agreement or expect to miss them, contact our lending team immediately. If you have failed to repay your bounce-back loan, or are missing or in default, if you are using another credit facility, or if you are failing to repay your bounce-back loan, we may take action if there is more than one borrower (one or more) to recover the full amount of the bounce-back loan. For example, if the company from which you took out the loan is the same lender as you, but it is a default on terms other than the credit facilities, it is considered to be in default under the law under a bounce back loan.
What are other Financial Options available if you do not want a Bounce Back Loan?
If you have refused a bounce-back loan or believe that this is not the most appropriate form of financing for your business, please contact our team at UK Business Finance who will provide you with the professional help and advice you need to finance your business in these difficult times. If you are turning down a loan or if you feel that you need further advice on a possible restructuring, please contact us. For support with your bounce-back loan, please contact your bank or accountant.
Businesses will have to fill in a brief online application to be eligible for the Bounce Back Loan facility and this will incur a charge of £10,000. Those who want to apply for a loan to repay must contact their bank directly or complete a shorter online application.
While only those who have had their loan refused by their bank or accountant can apply for a refund, anyone who has rejected their application can also find out about the loan through the UK Business Finance website or through our online funding portal. Companies will be required to complete a brief website application with a brief description of their business and whether or not they are eligible for the bounce back credit facility.
Can I shift my Existing Business Loan to a Bounce Back Loan?
However, companies that have already applied for and received a loan of £50,000 or less through CBILS can apply to switch their loan to the Bounce Back Loan Scheme, and they can do so from 4 November 2020. Lloyds, Barclays, and RBS will offer existing customers bounce-back loans once they have completed the necessary steps to ensure the money is met to get into the borrower’s account within 24-48 hours.
If you have received your loan (up to £50,500) under the bounce-back loan or would like to transfer instead, you can arrange this with your lender before the end of November. However, if you have already received or received loans (over £40,000) or more through the CBI LSLS and would prefer to transfer them to a lender after 4 November 2020, you must agree with another lender by 1 November 2019 to do so.
The delayed clarity has not stopped the 200 companies reporting applying within the first minute, and all bounce back lenders are accredited by the Financial Conduct Authority (FCA) and the Department for Business, Energy and Industrial Strategy.
Has the Bounce Back Loan Program been Successful?
The Bounce Back Loan program has attracted more than a million businesses, many of which will return and many who will seek additional financing from the bank. Rishi Sunak said companies would be given more time to repay the bounce loan under its new program.
If your bank decides to call off the time for your bounce back loan early, there’s nothing to stop you from switching. If you have already used and borrowed a bounce-back loan for personal use, you can transfer it and pay it back later. You can also apply for a loan to finance your business if you have problems with your credit card, credit card debt, or other financial problems. Businesses can get a bounce-back credit as long as you don’t have to have problems with your credit scores or credit reports.