Cirencester and Malmesbury accountancy firm, McGills Chartered Accountants, is highlighting the newly launched Bounce Back Loan scheme (BBLS) to small and medium-sized businesses after it was launched by the Government this week.
Up until now, McGills Chartered Accountants has said that many businesses had struggled to access finance via the existing Coronavirus Business Interruption Loan Scheme (CBILS) due to the bureaucracy involved and the fact that the scheme was only 80 per cent backed by the Government, which meant that lenders were unable to lend to businesses who couldn’t prove they had a long viable future ahead of them.
The new BBLS, in comparison, is 100 per cent Government-backed and offers loans of up to £50,000.
Furthermore, it has many of the popular features of the CBILS, including a 12 months interest-free period and no application fees. Businesses will also not have to make any repayments in the first 12 months.
Sharla Dandy, Partner at McGills Chartered Accountants, said: “The BBLS will offer a much-needed lifeline to those businesses who have been adversely affected by the Coronavirus pandemic.
“Whilst many companies had initially put their hope in other Government loan schemes, lots of businesses have had their applications rejected or were put off by the checks, long waits and red tape involved.
“The Government promises that this new loan scheme will make the process much easier, and importantly quicker, when it goes live online on 4 May 2020. Hopefully, businesses should only be required to complete a short form and gain access to the money in a matter of days, if the Government can deliver on its plans.”
However, Sharla warned that the BBLS would not be available to those businesses that have already successfully applied for the CBILS.
“The rules are clear that CBILS recipients cannot apply for this new scheme. However, there is a silver lining.” Sharla added.
“Those businesses who have acquired CBILS loans of up to £50,000 can ask their lender to transfer the loan to the BBLS, should they wish to, if they feel that it is more suited to their business.”
If your business is in difficulty due to the COVID-19 pandemic and you would like advice on the BBLS and other Government measures, please visit www.mcgills.co.uk.