Bounce Back Loan Scheme reminder
Just as a reminder, the scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover.
Key features of the scheme
- Facilities: term loans
- Repayment terms: six years, and early repayment permitted
- Interest rate: 2.5% per annum. No interest is payable in the first 12 months.
- Personal guarantees: No personal guarantees. No recovery action can be taken over the borrower’s main home or primary personal vehicle but, for sole traders or partnerships, other personal assets may be at risk of recovery action.
- 100% guarantee: The scheme provides the lender with a government-backed guarantee (100%) against the outstanding facility balance (principal and interest).
- The borrower always remains 100% liable for repayment of the debt.
- The borrower must self-declare they meet the eligibility criteria and make certain confirmations.
Please see previous update including the Bounce Back Loan announcement here. Closing deadline is 4 November 2020.
If you are not wanting to go through your own bank, please follow this link to help search for other participating lenders.
Debt is however debt, and should not be entered into lightly.
A business will be subject to standard checks such as customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. A lender may require other information eg self assessment tax returns.
Ineligible businesses and sectors: banks, building societies, insurance companies; the public sector including state-funded primary and secondary schools; or an individual other than a sole trader or partner acting on behalf of a partnership.
If you are new to Revel and are keen to find out more, please call our consultant Will Bolter FCCA MAAT ATT (our designated COVID-19 response advisor) on 07379 451484 or contact us by email here.