CBILS, bounce back and other Gov back loans extended until 31st March 2021

The following three schemes have been extended until 31 March 2021.

CORONAVIRUS BUSINESS INTERRUPTION LOAN SCHEME

The scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.

The scheme has been extended and is open until 31 March 2021.

See: https://www.gov.uk/guidance/apply-for-the-coronavirus-business-interruption-loan-scheme?utm_source=63fd2f34-693e-4f1b-b01c-6c90370bc39f&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

THE CORONAVIRUS LARGE BUSINESS INTERRUPTION LOAN SCHEME

The Coronavirus Large Business Interruption Loan Scheme (CLBILS) provides financial support to larger businesses affected by coronavirus (COVID-19).

The scheme helps medium and large sized businesses to access loans and other kinds of finance up to £200 million. The government guarantees 80% of the finance to the lender and recently announced that the scheme will be extended and is open to applications until 31 March 2021.

See: https://www.gov.uk/guidance/apply-for-the-coronavirus-large-business-interruption-loan-scheme?utm_source=61b117b3-7089-44f5-829b-af84c68c4fc9&utm_medium=email&utm_campaign=govuk-notifications&utm_content=immediate

BOUNCE BACK LOANS

The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year. The scheme has been extended and is now open to applications until 31 March 2021.

Businesses that took out a Bounce Back Loans to help them get through the COVID-19 pandemic will now have greater flexibility to repay their loans. In addition to the government covering the costs of interest for the first year of the loan the Chancellor’s Pay as You Grow repayment flexibilities now offer:

• The option to delay all repayments for a further six months, meaning businesses can choose to make no payments on their loans until 18 months after they originally took them out. The option to pause repayments will now be available to all from their first repayment, rather than after six repayments have been made.

• Borrowers the opportunity to extend the length of their loans from six to ten years (reducing monthly repayments by almost half) and make interest-only payments for six months, in order to tailor their repayment schedule to suit their individual circumstances.

If you already have a Bounce Back Loan but borrowed less than you were entitled to, you can top up your existing loan to your maximum amount. You must request the top-up by 31 March 2021.

For further information please follow the link below:

https://www.gov.uk/government/news/chancellor-eases-burden-on-more-than-a-million-businesses-through-pay-as-you-grow-flexible-repayment-options