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Has your business been operating for at least three years? YesNo
Do you have between five and 150 employees? YesNo
In the last financial year, did your turnover reach £250,000 or more? YesNo
Have you had any management education in the last two years? YesNo
Are you the primary owner or the primary decision-maker in your business? YesNo

NEW ANGLIA SCALE UP NEWS

Keep updated with the latest high growth news and what we’ve been up to at Scale Up New Anglia

Bounce Back Loan Scheme is Open for Applications from the 4th May

Following the Chancellor of the Exchequer’s announcement on 27 April, the Bounce Back Loan (BBL) Scheme opens for applications from the 4th May 2020 to support businesses during the Coronavirus crisis. Delivered by lenders accredited by the British Business Bank for this scheme, Bounce Back Loans target small and micro businesses in all sectors, providing loans from £2k up to 25% of the business’ turnover with a maximum loan of £50k.

Providing lenders with a 100% government-backed guarantee and standardising the application form is expected to lead to a faster process with many loans becoming available within days.

 

The Bounce Back Loan (BBL) on the British Business Banks website is the best source of up to date information on this new scheme and many of the other loan schemes during the crisis. However, for your ease of reference please click here to see the PDF fact sheet on the BBL. This contains all the key details you may need. You can also see information on the Gov.uk website by clicking here.

 

Bounce Back Scheme features

The Bounce Back Loans Scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year. The government will cover interest payable in the first year.

  • Up to £50,000 loan: Loans will be from £2,000 up to 25% of a business’ turnover or £50,000, whichever is lower.
  • 100% guarantee: The scheme provides the lender with a government-backed, full guarantee (100%) against the outstanding facility balance, both capital and interest. The borrower always remains 100% liable for the debt.
  • Interest rate: The government has set the interest rate for this facility at 2.5% per annum, meaning businesses will all benefit from the same, low rate of interest.
  • Interest paid by the government for 12 months: The government will make a Business Interruption Payment to the lenders to cover the first 12 months of interest payable, so businesses will benefit from no upfront costs.
  • No principal repayments for the first 12 months: Borrowers will not have to begin principal repayments for the first 12 months, thereafter capital will be repaid on a straight-line basis.
  • No guarantee fee for businesses or lenders to access the scheme
  • Finance terms: The length of the loan is for six years but early repayment is allowed, without early repayment fees.
  • No personal guarantees: No personal guarantees are allowed, and no recovery action can be taken over a principal private residence or principal private vehicle.

 

Other Business Finance Support Options 

You can also find details of other government measures to support public services, people and businesses through this disruption on the Government’s Business Support website.

 

Alternatively, you can visit our support document for a wide range of all the support options available for you and your business by clicking here – or for sector-specific schemes and information, this support document may be of assistance.

 

Guidance and Support for Businesses During this Time of Uncertainty

The British Business Bank and The Institute of Chartered Accountants in England and Wales (ICAEW) have created new content to help businesses that are facing financial and operational challenges as a result of the coronavirus outbreak. You can view this regularly updated guidance at the Business Finance Guide website.

 

If you wish to discuss this or any other business support further, do not hesitate to contact us by calling 0300 333 6536 or emailing growthhub@newanglia.co.uk