Hurry up! Apply for the Bounce Back loan sole trader scheme until it’s too late, as the last date to register for this scheme is 31 March 2021.
Bounce Back Loan Scheme (BBLS):
This scheme is aimed at uplifting small and medium-size businesses to get prompt cash during the Covid-19 pandemic. Only sole traders and limited companies can get the benefit from this scheme.
The bounce-back loan sole trader scheme provides a loan of £2,000 and up to 25% of the total turnover of businesses. The maximum threshold of this loan is £50,000. Those who are willing to get large loans may apply for other government support.
You can pay back the loan within the timeframe of 10 years. The UK government provides a 100% loan guarantee without any interest or charges within 12 months. After this limit, the government will charge 2.5% in a year.
This loan is especially beneficial for those who were unable to qualify for other coronavirus support schemes.
For those who have already taken the loan from this scheme and want more loans, they can apply for a top-up to the existing loan and get the maximum loan benefit before the due date.
You can register on our website to get the nearest accountants in your area as per your service details.
Eligibility for Bounce Back Loan Sole Trader Scheme(BBLS):
You may apply for this scheme if you fall under the below categories:
- You are operating a UK based business
- It was started before 1 March 2020
- It suffered due to the Covid-19 pandemic
Who’s not eligible for the Bounce Back Loan Scheme (BBLS)?
Businesses of every sector can apply for this scheme except:
- Banks, and insurance companies excluding brokers
- Public institutions
- Primary & Secondary Schools funded by the Government.
If you have already applied for the below-mentioned scheme, you are not eligible:
- Coronavirus Business Interruption Loan Scheme
- Coronavirus Large Business Interruption Loan Scheme
- COVID-19 Corporate Financing Facility
If you have already taken the loan of £50,000 from one of the above schemes, you can transfer it to the Bounce Back Loan Scheme before the due date.
Length of the Loan:
This loan is provided for 6 years, however, you can pay it within 12 months to be exempted from the interest. After 12 months, your lender will allow you to choose the following options:
- Make the loan extension for 10 years
- Do interest-only repayments for 6 months( available three times)
- Pause repayments for 6 months (once)
How to Apply for BBLS?
Please keep in mind that you should apply for a bounce-back loan sole trader scheme before 31 March 2021.
For applying, contact the lenders’ website. There are 29 leaders who’re working under this scheme.
You are required to fill a brief online form along with self-declaration. Finally, the lender will decide whether to pay you the loan or to provide you other types of finance. You are obliged to pay back 100% of the loan amount.
Click here to find a lender!
Quick Wrap Up:
If your application is not accepted by one lender, you may apply for another lender to apply for a bounce-back loan sole trader scheme. Contact us for further assistance!