With the country still on lockdown, many businesses are having to adapt to stay afloat in these uncertain times using government loans, tax relief and cash grants.
Employers were able to apply for their staff to get up to 80% of their wages along with self employed people having access to grants of £2,500 a month for at least three months.
On the 4th of May the Bounce back Loan scheme (BBLS) was launched. This a new fast track, government-backed scheme allowing small firms and businesses to apply for up to £50,000 in loans.
The Bounce Back Loan Scheme interest rate set at 2.5%
Attached Letter: Chancellor of the Exchequer to all accredited funders stating the rates that must be charged.
BBLS loans up to £50,000 & now the CBILS will be a minimum of £50,001 FREE advice here.https://t.co/7GqiJLZVUL
— Peacock Finance (@PeacockFinance) May 3, 2020
The scheme’s launch took place at 8.30am on Monday morning with banks receiving 79,500 applications by the afternoon.
For some, the relief from loans are just not an option as their businesses include close contact interactions, so they have had to be put completely on hold.
Jane Broderick, business owner and mother of two, is a self employed driving instructor and owner of Vitesse school of motoring. It is just one of these small businesses affected by the implications of COVID-19.
“there was no other way of me offering lessons without breaching social distancing rules, so I had to get creative” – Jane Broderick, Business owner.
She has been having to balance the home-schooling of her daughters, which she says has been “an interesting challenge” with finding innovative ways of keeping her business name relevant and interacting with pupils and potential customers.
Because of the close contact nature of driving lessons she says “there was no other way of me offering lessons without breaching social distancing rules, so I had to get creative and I decided to hold weekly Facebook live driving lessons where I also answer questions”.
As her business is on hold she has only been eligible for support from the self employment government funds.
The Bounce Back Loan scheme:
- Small and medium-sized businesses to borrow between £2,000 and £50,000.
- Guaranteed 100% of the loan with no fees or interest for first 12 months.
- Loan terms will be up to 6 years. No repayments will be due during the first 12 months.
- You can apply if you are based in the UK and have been affected by Covid-19.
If you are a small business and would like to apply or find out more about the criteria for the Bounce back Loan scheme you can head to https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan .