By Steve Walker - Chief Executive, ART Business Loans
It is good news that the COVID-19 instigated Bounce Back (BBL) and CBILS loans schemes (CBILS), supported by Government have been extended. This will enable businesses to lodge their applications with lenders before the end of January 2021 and lenders have then one month to confirm agreement and agree usual drawdown terms, which are likely to be within a further month.
I say good news because in looking forward, I believe that the highly favourable terms currently available are unlikely to be there at expiry:
Government, through British Business Bank, pays the first year’s interest and lending fees
No early repayment penalty
Reduced interest rates
No personal guarantees on loans up to £250k
With BBL, self-certification and a very light touch process to gain loans up to £50k.
Businesses need to be aware that the borrower does of course remain liable for the loans under both schemes. Although the Go...