What was the Bounce Back Loan Scheme (BBLS)?
The Bounce Back Loan scheme was a Government funded program which granted funds to UK companies to help them overcome hurdles brought about during the COVID-19 pandemic and the nationwide restrictions imposed. An alternative to the Coronavirus Business Interruptions Loan Scheme (CBILS) the BBL scheme was more widely available to companies.
Aimed at rescuing SME’s this scheme entitled eligible businesses to a loan of up to 25% of their turnover with an upper threshold of £50,000. These loans were interest free for the first 12 months and backed with government security for the complete amount, giving lenders more faith in troubling times.
The scheme was open to applicants until 31st March 2021 and lenders were able to top up previous BBLs had they not borrowed the full amount entitled to them.
Despite these loans, businesses have still struggled immensely with the fall-out from the COVID-19 restrictions in place throughout the UK. Many businesses are realizing that even with this help, their businesses are unlikely to survive or are still struggling to maintain their financial obligations.
Due to this, our team have noticed an increasing number of business requesting advice regarding these BBLs.
So, what does this mean for businesses?