Don’t invest unless you're prepared to lose money. This is a high-risk investment. You may not be able to access your money easily and are unlikely to be protected if something goes wrong. Take 2 mins to learn more.

Emergency Credit for SMEs with Bounce Back Loans

Relief Loans for Small Businesses, 100% Guaranteed

6th May 2020

The Government’s highly anticipated Bounce Back Loan Scheme (BBLS) went live this week. This is providing vital, fast financial relief for British Businesses affected by the economic impact of COVID-19. BBLS is aimed at SMEs seeking loans of up to £50,000 (minimum 2k, capped at 25% of annual turnover) and, with this relief scheme being exempt from consumer protection laws, the loans should be received within a few days of businesses applying.

On Monday, over 110,000 businesses applied for the relief funding. Despite this huge demand, the banks have reported that the majority of applications received have been processed, and the average loan size is currently estimated to be £30,000. This is almost on par with the amount handed out through CBILS in over a month since its launch.

To give a perspective on the enormity of this operation, the size of non-bank lending is around 2bn per annum and it’s estimated that through BBLS, 3.3bn will be handed out on the very first day.  

The popularity of the scheme is no surprise, given that the loans are 100% guaranteed by the government, have a repayment grace period of 12 months, can be up to 6 years in term, have no arrangement fee and are capped at an interest rate of 2.5% - exactly what so many businesses require in order to help come through the pandemic.

In these unprecedented times, deploying funds to viable SMEs quickly will be integral in aiding the recovery of the market and Crowd2fund are currently in conversations with the British Business Bank regarding the matter.

The BBLS can be used by a range of businesses, including the smallest, the true future of the dynamic UK economy and it’s a fantastic form of credit, owing to its affordability and apparent speed of deployment. This is an area of the industry that has been at the heart of Crowd2Fund, since its inception. 

As the landscape evolves day-by-day, we will keep you updated on our position, as we have some extremely exciting and ameliorating prospects on the near horizon.

For more information on BBLS and how to apply, please visit:

https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

 

Related Posts

Wildfire Design Consultants

Wildfire Design Consultants

Posted: 30th September 2024

A Conversation on Transforming Destinations and Fan Experiences

How to Boost Your Word-of-Mouth Marketing

How to Boost Your Word-of-Mouth Marketing

Posted: 4th June 2024

Powerful and effective ways to grow your business

Investor’s Guide to Buying on the Secondary Market

Investor’s Guide to Buying on the Secondary Market

Posted: 1st December 2023

The game changer for investors that allows you to diversify your portfolio or exit investments early...

Risk warning

Past performance and forecasts are not reliable indicators of future results. Your capital invested is not covered for compensation in the event of a loss by the FSCS. Tax treatment will depend on the individual circumstances and may be subject to change. Please see our Risk section before making an investment decision.

Top