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How to apply for a Bounce Back Loan

Posted 13/05/2020 by Amy Patterson

The Bounce Back Loan Scheme (BBLS) supports businesses by providing access to a source of alternative finance if you are impacted by the coronavirus outbreak. The BBLS is designed to help you in circumstances where you wouldn’t normally meet our eligibility criteria.

At Farnell Clarke we understand that it’s important to have the flexibility to cope with changes to your day to day cash flows if you’re impacted by the coronavirus outbreak.

The BBLS is a government backed guarantee scheme, which may allow you to borrow money in these circumstances. The guarantee provides the lender with a full guarantee, should you fail to repay the loan following a demand by the lender.

The provision by the UK Government of this support does not imply any endorsement or warranty of the lender from the Secretary of State for Business, Energy and Industrial Strategy or the UK Government. You will always remain responsible for repayment of the whole of the debt.

By asking a lender to consider your BBLS eligibility, you’re confirming that your business has been impacted by the coronavirus outbreak.

If you are accepted for a BBLS Business Loan, the UK Government will pay the interest due on your loan for the first 12 months on your behalf.

In addition to this, if accepted, there will be a payment holiday of 12 months, so you will not be required to make any capital repayment within the first 12 months of the 72-month agreement.

Things you need to know before you apply

The scheme offers businesses a government-backed lending facility if they meet the Bounce Back Loan Scheme eligibility criteria. We accept there is a lot to consider when applying for additional credit, no least the pressure and additional responsibility upon the business and its directors going forward.

What are the facts and figures?

· Straightforward application with quick access to funds

· Loan amount of up to a maximum of £50,000, this is based on 25% of your annual turnover if that is lower

· Interest rate of 2.5%

· Government covers the first 12 months of interest (this means you pay 0% for the first year)

· No repayments required for the first 12 months

· Up to 6-year loan (72-months) with no early repayment charges

Eligibility

· You must apply via your current online banking portal using your relevant security questions and answers

· You’re a UK-based business that has been impacted by COVID-19

· You haven’t already applied for or received a Bounce Back Loan

· You don’t already have a CBILS, CLBILS or CCFF unless you’re refinancing it in full by taking this BBLS.

· Full eligibility details are included within the online application process

What should you do next?

This is a facility that went live on 4th May, since that time we have helped many clients, and new clients reaching out for our assistance to help them all successfully navigate the application process, ensuring they understand the process, implications and help map out a way forward.

If you are successful in the online process, the paperwork and funds transfer should be relatively seamless and prompt.

If you are not eligible for the government funded offering do not despair, there are still routes to market via refinance, Cash flow funding, stock finance, and commercial business loans that exist outside the CBILS and CLBILS lending program.

We are happy to assist you with any queries, and if required, preparing full application bundles to present to lenders outside the CBILS process if required. If you are concerned about the future of your business and indeed funding a way forward, please do get in touch.

Contact

Justin Lavery Corporate Finance Director

Patrick Leavy Client Account Manager

For more information visit https://www.gov.uk/guidance/apply-for-a-coronaviru...

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