Government Loan Schemes
The Government loan schemes have been extremely popular with SMEs since launching in 2020 with over £50B of funds released under the Bounce Back Loan Scheme (BBL) and the Corona Business Interruption Loan Scheme (CBILS). The main features of the schemes are very similar but include the following:
- Loans from £2000 to £5m
- Loan terms up to 120 months
- Capital and interest-free period up to 12 months
- No personal guarantees or personal assets are taken as security for Limited Company Directors for loans up to £250,000
- Interest rates 2.5% for BBL and variable for CBILS
Since the closing of the Bounce Back Loan and CBILS scheme at the end of March 2021, the new Recovery Loan Scheme has launched. This is a much more traditional business lending product based on serviceability and underwriting and therefore, requires a greater level of business planning to obtain.
For a series of videos on the Government Loan Schemes please Click Here
