The new Bounce-back loan scheme has been announced by Government. The BBLS is a new scheme designed to enable businesses to access finance more quickly during the coronavirus outbreak. It provides financial support to businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak and that can benefit from £50,000 or less in finance. The BBLS is available through a range of British Business Bank accredited lenders and partners, listed on the British Business Bank website. A lender can provide a six-year term loan from £2,000 up to 25% of a business’ turnover. The maximum loan amount is £50,000. The scheme gives the lender a full (100%) government-backed guarantee against the outstanding balance of the facility (both capital and interest). Full details at https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/ Members are asked to give NPA any feedback on getting a loan- good or bad.
The Government has also announced a widening of criteria for the Small Business Grants Fund from which pawnbrokers were previously excluded. They state; Local authorities may choose to make payments to other businesses based on local economic need. The allocation of funding will be at the discretion of local authorities. Businesses must be small, under 50 employees, and they must also be able to demonstrate that they have seen a significant drop of income due to Coronavirus restriction measures. The fund covers 3 levels of grants up to £25k, and members requiring grants should contact their local authority as soon as the Government issues the new guidance to them. NPA will update when we have more information