Bounce Back Loan Scheme (BBLS) – what is it and does my business need it?
What is the Bound Back Loan Scheme (BBLS)?
In recent weeks the government has announced numerous ways in which it will help businesses survive the tough circumstances they currently face with Coronavirus COVID-19.
We’ve spoken to hundreds of businesses since the UK lockdown are most are worried about their business’s future and financial security.
The Bounce Back Loan Scheme (BBLS) is one of the measures put in place by the UK government to help business during the 2019-2020 Covid-19 Coronavirus outbreak.
Simply put, business can borrow up to 25% of their annual turnover (from £2,000 and capped at £50,000) and the loan will be guaranteed by the Government. The loan term is 6 years with an interest rate of 2.5% – but it can be paid off earlier without any incurring any fees.
The government will also cover the first 12 months of interest payments meaning if you pay it off within the first 12 months, you will not have paid any interest or fees on the loan.
Do I need a business loan?
Depending on your businesses financial and current trading situation, you may benefit from taking out the loan to resolve any short-term cashflow issues.
Many businesses are taking advantage of the scheme and we’ve had numerous queries and clients getting in touch looking to get some protection in place to cover the Bounce Back Loan should the worst happen to them.
If you would like a quote on Key Person Cover, you can get one here:
It’s important to note that the scheme is a loan and not a grant. Whilst it is government backed, the business is responsible for repayment. With this is mind, we highly recommend looking at getting a policy in place to help cover the loan should the worst happen to a key person in your business.
A Key Person policy is a great way to protect and safeguard your business. This policy pays out in the event of the insured passing away, providing the finances needed to pay back the Bounce Back Loan. Critical Illness Cover can also be added to the policy which pays out in the event of the life insured becoming critically ill.
If you have taken advantage of the Bounce Back Loan Scheme (or are contemplating doing so) and would like to find out how affordable a Key Person protection plan can be, fill out our super quick form and we’ll compare the UK’s Top Providers for you – helping you find the cover that best suits your need at the right price.