This scheme has been set up by the Government to assist small and medium sized businesses affected by Coronavirus to apply for loans of up to £50,000. In addition to the size of the loan, the other main difference to other schemes is that BBLS funds are 100% guaranteed by the Government, rather than the 80% guarantee that applies for the Coronavirus Business Intervention Loan Scheme (CBILS).
The BBLS will provide businesses with a loan of up to 25% of their turnover, capped at £50,000, with no interest payable for the first year.
The proposed launch date for the BBLS is 4 May 2020.
The BBLS is an alternative to the CBILS, and your business will not be eligible to apply if you have applied for funding under the CBILS. However, if you have received funding from a CBILS loan it may be possible to transfer this into the BBLS, which will benefit both the funder and borrower due to the increased guarantee.
You can apply for a BBLS loan if your business:
- Is based in the UK
- Has been negatively affected by coronavirus
- Was not an ‘undertaking in difficulty’ on 31 December 2019
- Has not applied for funding under the CBILS scheme
The Chancellor of the Exchequer, Rishi Sunak, commented that the process will be online and involve a ‘simple, quick, standard form’, and there is an expectancy that the applications should therefore be processed more expediently by the lenders than those used for other schemes including CBILS and CLBILS. The Government has stated it will provide further detail about the application process in due course and we will keep you updated of any developments.