Key features of BBLS

  • Apply for 25% of turnover up to a maximum of £50,000 (minimum £2000)
  • Simple, seven-question application form
  • If you’ve already taken out a CBIL up to £50,000, you can apply to switchover the BBLS
  • The loans are backed by 100 per cent government guarantees
  • The government will pay the interest for the first 12 months and no repayments will be made during this time
  • BBLS are for up to six years
  • There will be no early repayment fees
  • There will be a flat rate of 2.5% interest following the initial 12-month interest free period

Who’s eligible

The Scheme is open to most businesses, regardless of turnover, who meet the eligibility criteria and who were established on or before 1 March 2020. Borrowers are required to declare, amongst other things, that:

  • It’s UK-based in its business activity, and established by 1 March 2020
  • It’s been adversely impacted by the Coronavirus (Covid-19)
  • It’s not currently using a government-backed Coronavirus Loan Scheme (unless using BBLS to refinance a whole facility)
  • It’s not in bankruptcy, liquidation or undergoing debt restructuring
  • It isn’t a bank, building society, insurance company, public sector organisation, state-funded primary or secondary school, or an individual other than a sole trader or a partner acting on behalf of a partnership.
  • On 31 December 2019 the business was not a “business in difficulty”
  • More than 50% of the income of the business (together with that of any member of any group of which it is a part) is derived from its trading activity
  • It will use the loan only to provide economic benefit to the business, and not for personal purposes

How to apply

A standard, simple form will be used by all lenders offering loans under the BBLS. The majority of lenders are taking applications directly via their websites.

Government guidance can be found here.

Finally, we are here of course if you have any questions.