The government is extending the BBLS and the CBILS deadline to 31st January 2021 for new applications.

The Bounce Back Loan Scheme (BBLS)
The BBLS provides support to UK-based small businesses.

Loans are between £2,000 and £50,000, capped at 25% of turnover, with a 100% government guarantee to the lender and interest at 2.5% pa after the first 12 months.

The borrower does not have to make any repayments for the first 12 months, with the government covering the first 12 months’ interest payments.

Businesses will have options (under the Pay as you Grow scheme) to:
• repay their BBLS loan over a period of up to ten years
• move temporarily to interest-only payments for periods of up to six months (an option which they can use up to three times)
• pause their repayments entirely for up to six months (an option they can use once and only after having made six payments).
Coronavirus Business Interruption Loan Scheme (CBILS)
The CBILS provides loan facilities to UK-based businesses with turnover under £45 million.

The scheme provides loans of up to £5 million with an 80% government guarantee to the lender.

The government does not charge businesses for this guarantee and also covers the first 12 months of interest payments and fees.

There are no personal guarantees required for loans of up to £250,000.

The government intends to allow CBILS lenders to extend the term of a loan up to ten years.

Please contact us if you have any queries or would like assistance with this.

Kind regards

The Team at Blackthorns