BBL, CBILS & RLS Solicitors

Navigating the Aftermath of Pandemic Support Schemes

In the wake of the unprecedented challenges posed by the recent pandemic, governments worldwide introduced various financial support schemes to buoy struggling businesses. In the United Kingdom, these schemes were a lifeline for many enterprises, but now, they have transformed into a financial burden for countless companies. At GMD, our solicitors understand the complexities and strains surrounding these schemes—BBL's (The Bounce Back Loan Scheme), CBILS (The Coronavirus Business Interruption Loan), and RLS (Recovery Loan Scheme)—and are here to offer guidance and solutions.

BBL (Bounce Back Loan)

The Bounce Back Loan Scheme, introduced by the UK government, aimed to provide short-term financial support to businesses grappling with the pandemic's impact. Under this scheme, loans of up to £50,000 were swiftly distributed by various lenders, often with minimal due diligence. While this lifeline offered respite to numerous businesses, it has also left a trail of arrears, defaults, and missed payments. Many companies now find themselves on the precipice of liquidation, and some directors are facing investigations by the Insolvency Service as a result of the fallout from bounce-back loans.

CBILS (Coronavirus Business Interruption Loan Scheme)

The CBILS program injected billions of pounds into SMEs across the UK, providing a financial cushion during challenging times. However, the lack of thorough due diligence before approving these loans has now come to haunt businesses. With payment holidays drawing to a close, companies are grappling with the daunting task of repaying these loans, straining cash flow and operational capabilities. The "government-backed" label, which once provided reassurance, now offers limited protection, leaving businesses in a precarious position. At GMD, we're here to help you navigate these challenges.

RLS (Recovery Loan Scheme)

The RLS was introduced as the successor to CBILS and BBL, designed to continue aiding businesses in their recovery from the pandemic. Initially, businesses in the UK were granted access to £1.06 billion, with an individual company's borrowing limit set at £10 million. Later, this limit was adjusted to £2 million. However, the economic landscape has evolved, with businesses facing rising costs of living and energy, making the burden of these recovery loans increasingly challenging to bear.

How GMD Can Help

At GMD, we recognise the strains and complexities that businesses are facing as they grapple with the aftermath of pandemic support schemes. Our solicitors can assist you in managing these financial challenges, exploring options for loan repayment, and developing strategies to ensure your business's stability and growth.

The support schemes introduced during the pandemic were a lifeline for businesses, but they have now transformed into a significant financial strain. GMD's solicitors are committed to helping you navigate these challenges, providing the guidance and solutions needed to secure your business's future in these uncertain times. Your financial well-being is our priority, and we're here to assist you every step of the way.