From Setback to Success – Your Partner in Recovery

Bounce Back Loans (BBL) were introduced by the Government in May 2020 to assist businesses with cashflow during the pandemic. Under the scheme businesses were able to access loans of up to 25% of their annual turnover up to a maximum amount of £50,000.

Bounce Back Loans were originally offered over a six-year period, with no repayments due for the first 12 months. The government agreed to cover the interest payable during the first 12 months of the loan period. As most Bounce Back Loans were taken out over a year ago, for most, the initial payment holiday now over. Now that payments are falling due there are a lot of companies now facing an unaffordable monthly cost.

However, most did not anticipate another year of restrictions and this has left many businesses unable to survive.

A CBILS loan (Coronavirus Business Interruption Loan Scheme) is a government backed loan to provide lending up to £5m for small to medium sized businesses that have experienced business disruption and cash flow problems as a result of the pandemic. The scheme allows the lender to offer credit facilities underwritten by a government-backed guarantee which enables most credit decisions to become accepted. Additionally, the loan interest is also covered for the first 12 months from the date of drawdown of the loan.

There is no requirement to provide security against the loan or a personal guarantee for loans up to £250,000. Some lenders may request security for loans over £250,000 by way of a guarantee, but this cannot be secured on a Directors’ private property and it is only required for 20% of the lend.

Applications for CBILS loans ceased on the 31st of March 2021.