Following the range of updates over the last six weeks, we have now rounded up the latest information from the government on specific schemes where additional details have been released. This update covers measures discussed up to 4th May.
On 4th May we saw the launch of the Bounce Back Loan Scheme (BBLS). On its first day alone, over 110,000 businesses applied for loans totalling an estimated £3.3bn (an average loan of about £30,000).
Reports suggest that applying for the scheme is relatively straightforward and with a Government guarantee over the first twelve months and a low interest rate thereafter, the scheme will provide welcome relief for smaller businesses affected by the crisis and those positioning for a rebound in activity who want to invest in their businesses with cheap source of finance.
Whilst the loans are operated through the British Business Bank, they will be administered largely by the mainstream high street banks, who have been bolstered by the guarantees on offer and therefore appear keen to lend. Most will offer the loans to existing customers only, however, some will in fact offer loans to new customers on the provision of a more detailed application.
With the sense that more restrictive measures will soon be relaxed, hopefully these additional schemes and amendments can help business begin on the road to recovery and economic activity can begin to be rebuilt.
Read our update below: