Bounce Back Loans (BBL) – 2.0
For many companies, the bounce back loan has been a saviour, getting them through the tough times of multiple lockdowns with a cheap, currently interest-free loan of up to £50K. If you have been hiding away from the news, preoccupied or are just now thinking that it would be beneficial to have that cash to fall back on, you might want to act now as the deadline for both bounce back loans and its big brother, CBILS (Coronavirus Business Interruption Loan Scheme) is currently 31st March 2021.
Perks of a BBL, including the more recent updates:
- 2.5% interest rates (0% interest for the first 12 months).
- No repayments for the first 12 months*
- 6 year standard repayment period with an option to extend to 10 years.
- No fees for early repayment.
- 100% government-backed meaning that banks are likely to accept.
- *Option to pause repayments for an additional 6 months, once.
- Option to make interest-only payments for 6 months, up to 3 times.
How do I take up these options?
Lenders will start contacting businesses 3 months before their first repayment is due, providing details of how to apply for these additional options.
I already have a BBL but could do with more, what can I do?
If you didn’t take the full £50k at the start, you may be able to apply to top this up to either £50K or 25% of your annual turnover, whichever is smaller. The deadline for this is also currently 31st March 2021.
If this still isn’t enough, for those of you with turnovers of over £200K, you might be able to transfer your loan over to CBILS which provides loans of up to £5m. While CBILS does not have quite as many benefits, there are still many benefits over usual market loans.
I currently have a CBILS, but I don’t really need more than £50K, can I convert this into a BBL?
If you are now finding that a BBL should be more than enough for your needs and want to gain the extra benefits of a BBL you should be able to convert this over, provided you have the funds to do so. You should speak to your current CBILS provider on how to do this.
If you have any bespoke questions about your own position, please feel free to contact us and we can help guide you.