In March 2020 the UK Government introduced a number of initiatives to help support UK businesses suffering from the impact of Covid-19. HMS have the necessary permissions, skills, resources and systems in place to help support some of the measures.
Bounce Back Loan Scheme (BBLS)
Introduced to support small and micro businesses, loans were issued by mainstream banks and other large lenders but supported by a UK Government guarantee of 100% of the value of the loan (a maximum of £50k or 25% of company turnover). Interest rates on these loans are capped at 2.5% and the Government will cover the first year of interest.
HMS are authorised to provide recovery and collection services for consumer loans, and with it widely expected that a large proportion of these loans will not be repaid in full, the team at HMS are here to support lenders of BBLS loans in their recovery efforts.
Coronavirus Business Interruption Loan Scheme (CBILS)
CBILS is a government initiative introduced to aid the recovery of businesses that met the threshold conditions for loans of £50k up to £5m in size. Unlike BBLS, interest on these loans was capped in June 2020 at 14.99% p.a., which still remains a very attractive potential return to lenders.
HMS has been vetted by the British Business Bank to provide standby servicing for CBILS loan transactions.