Government loan packages
Businesses facing difficulty in repaying with Government’s Bounce Back Loan Scheme (BBLS) and The Coronavirus Business Interruption Lending Scheme (CBILS) do have options. In this guide we share the top line details to consider –
The Bounce Back Loan Scheme (BBLS)
- Can be extended from their original term to up to ten years.
- Can be switched to interest-only payments for periods of up to six months. The interest-only option can only be used three times during the loan term.
- Can pause repayments entirely for up to six months. The business can only use this option once, and only once six months’ worth of repayments have been made already.
Coronavirus Business Interruption Lending Scheme (CBILS)
- At the moment, the CBIL scheme ends on 31 March 2021.
- There have been no extensions to the term announced and no additional flexibility has yet been forthcoming. Repayments will commence 12 months after the loan commenced.
- In some circumstances you may be able to refinance a CBIL up to the end of March for a fresh 6 year term with the first year’s fees and interest covered by the Government.
- It may also be possible to release any debenture taken by your existing lender or remove personal guarantees depending on the size of the loan.
About Oscar Fairchild: Oscar Fairchild (incorporating Redwood Clarke since 01.09.18) is an ACCA chartered and certified and AAT qualified accountancy, financial consultancy & bookkeeping practice with offices in The City of London, and Billericay, Essex. Offering a wide range of services including Self-Assessment Services, Annual Returns, VAT Returns, Credit Control, Payroll, Auto Enrolment Pension and Management Account services to high growth businesses and licensed London taxi drivers across London, Essex and Hertfordshire.