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Daily Record
Daily Record
Sport
Steven Mair

SFA encourage clubs to use loan scheme as government throws struggling sides a lifeline

The Scottish FA have urged struggling clubs to opt into a government scheme providing interest-free loans to small businesses.

Some clubs have been struggling since the March 13 shutdown of all Scottish football due to the coronavirus outbreak.

With 43 per cent of Scottish clubs' income coming from gate receipts, the virus has presented a massive funding challenge.

But the SFA have urged sides to join the Bounce Back Loan Scheme announced by the UK government last month.

It allows for loans up to £50k to be dished out to clubs with no interest due for a year.

Thereafter the interest rate is a tiny 2.5 per cent, and the application process requires no checks, fees or personal guarantees.

And that could be crucial to Scottish clubs in these grim times, particularly in the lower reaches of League One and League Two.

The SFA revealed that some have already signed up to the scheme, with one in particular noting the process took minutes.

An statement read: "On 27 April 2020 the Chancellor of the Exchequer announced the Bounce Back Loan Scheme (“BBLS”) to help smaller businesses, including football clubs, to recover from the economic impact of COVID-19.

"Loans are available between £2,000 and 25 per cent of turnover, up to a maximum loan of £50,000.

"More than 69,000 of 130,000 applications were approved in the first 24 hours of the scheme opening this week according to the Chancellor – worth over £2bn.

"Clubs should take note that the application process is fully automated, there are no credit checks and the scheme is 100 per cent underwritten by the UK Government.

"Any club interested in accessing a loan under the BBLS should contact their bank for more details. It has been reported to us by one club that the application process took a matter of minutes."

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