Blantyre businesses may be eligible for government backed loans to help with hardship caused by Coronavirus.
Small and medium businesses such as cafes, electricians and hairdressers can apply for the Bounce Back Loan Scheme (BBLS) through their bank which offers loans between £2,000 and £50,000 to assist in resuming trading after the pandemic.
The government will guarantee banks 100% of the loan value therefore providing an incentive for lenders to provide a loan to a wider pool of applicants and in particular those who perhaps have a lower credit rating.
The loan term is over a period of six years with the government covering fees and interest for the first 12 months and an interest rate of 2.5% on the remaining duration. There is no fee or penalty for paying the loan off early and businesses do not need to make any repayments for the first year of the agreement.
Most high street banks are involved in the scheme with some customers reporting they have applied in the morning and had the funds paid in the account later in the afternoon.
The short online application is relatively straightforward for those limited companies and sole traders who currently hold a business account. It is worth noting though that some banks will accept an application for sole traders who are using their personal account for business purposes on the condition they can provide documents such as an 18/19 tax return.
In addition to the scheme the government is offering cash grants, tax relief and assistance with staff wages to help eligible local businesses prosper.
More information can be found at www.gov.uk.
Article by local correspondent: Jordan Tennant