The UK seems to be heaving a collective sigh of relief as we begin the slow process of coming out of lockdown. But there is a flip side to this relief; as Businesses across the country start looking at the financial burden that Covid-19 has left them with.
At HUBU Accountants we work with clients who are made up mostly of small to medium sized Businesses across the UK, and these are exactly the kind of Businesses that the Coronavirus bounce back loan scheme, or BBLS, was created to help… However if you’re searching for help now, you need to be aware that this scheme was discontinued as of March 31st 2021.
As the length of the loan is 6 years, it means that those who have borrowed the maximum amount of £50,000 have a good amount of time to pay back. Those who took out the loan in March or April of 2020 will know that they now have to start making their repayments, as the first 12 month grace period of zero payments has now ended; which we are aware will be worrying for some Business Owners.
Although this, and other schemes, gave the lender a Government backed guarantee for the repayments, the borrower continued to remain liable for the debt. And although the repayments only have an added interest rate of 2.5%, Businesses are suddenly being burdened with additional stress and financial strain. For example - a £50,000 Government backed loan paid back over 6 years, with the additional 2.5% interest, means a Business Owner needs to find an additional £711.81 per month of revenue to make the repayments. Not an easy task when some Businesses remain closed or with limitations to their custom.
So, now that this scheme has ended, where can you go for help as a Business Owner?
Well, the Government has now set up a new collection of financial support packages for small to medium sized Business Owners. At Hubu Accountants, we can help you to find out how to access this support and whether or not you’re eligible.
Please be aware that if your Business is based in Wales, you will need to visit the Welsh Government Website for more information.
If you need any further advice on understanding your Business Bounce Back Loan, please Get In Touch with Hubu Accountants, and we’ll be happy to help.