With effect from 4 May 2020 many small and medium sized recruitment businesses can claim for a ‘bounce back loan’ for up to £50,000.
The terms of these loans are as follows:
- 100% guaranteed by the government, therefore no personal guarantees or security required
- Interest free for the first 12 months
- Repayment period of up to 6 years
- No repayments in the first 12 months
- 2.5% per annum interest rate thereafter
Applications for this scheme are far more straight forward than the Coronavirus Business Interruption Loan Scheme (CBILS), with only a short application form. But maybe most importantly, the applicant only has to self-declare they were not an ‘undertaking in difficulty’ on 31 December 2019. One of the challenges being faced through CBILS application is the ability of recruitment businesses to service these loans in the future due to significant levels of uncertainty.
These bounce back loans should be a welcome option for many, and it may be argued that even for those recruitment businesses who are currently not forecasting a requirement for debt, having an interest free loan that can be repaid in 12 months brings some useful flexibility. Also the cash turnaround time on some applications has been less than 24 hours.
The scheme is being delivered through accredited lenders in a similar way to CBILS, albeit via an online application form, and it is only available to recruitment businesses based in the UK.
Finally, if you already have a CBILS loan that is less than £50,000 you have the option of transferring to the Bounce Back Loan Scheme any time before 4 November 2020.
In partnership with APSCO, we delivered a webinar to share our knowledge on the Bounce Back Loan covering:
- Who can apply and an overview of the scheme
- How to apply and the terms of the loan
- The differences between bounce back loan and CBILS
- FAQs that we have come across with our clients
You can listen to the webinar here: Insights in Demand – Bounce Back Loan Scheme Update
Should you have any question on the above or need any support in applying for funding, please call Stuart Hutchison on 07590 440643 or email firstname.lastname@example.org