We are now just over a month away from the 31st March 2021 deadline for applications for the Bounce Back Loan (BBL) and Coronavirus Business Interruption Loan Scheme (CBILS).
The schemes were introduced to provide businesses with much needed working capital during the global pandemic, businesses benefited from no capital repayments being required for twelve months after taking out the loans.
Businesses should be aware that they are eligible to top up their BBL if they did not borrow the maximum amount of £50,000. The maximum amount that could be borrowed is based on 25% of your annual turnover. Even cash-rich businesses can consider taking a CBIL/BBL as a ‘just in case’ and given there are no fees or interest this can provide them with a safety blanket for the next 12 months.
The eligibility criteria differs for each scheme and this therefore needs to be reviewed as part of the application process.
There have been rumours the schemes may be extended again and that there could be loan products to replace the BBL and CBILS when the schemes come to an end. It remains to seen whether the Chancellor will make any announcements before or after the budget on 3rd March 2021.
If this may of interest to you please speak to your Whiting & Partners contact for more information.