Coronavirus Bounce Back Loan Scheme
Good news for many small businesses who were struggling to gain access to the CBILs loans, with banks wanting business owners to jump through hoops and then offer personal guarantees as well – Chancellor Rishi Sunak yesterday announced the ‘Bounce Back Loan’ scheme.
This scheme is targeted at small and medium-sized businesses affected by COVID-19, and offers loans of up to £50,000 which are 100% backed by the government. The amount borrowed can be up to £50,000 up to a maximum of 25% of the businesses turnover. Meaning if your turnover was £100K last year you can borrow £25,000.
This loan will be 100% guaranteed by the government, with no fees, interest or repayments due for the first 12 months of the loan. The government are currently working with lenders to ensure a low rate of interest is agreed for the remaining part of the loan.
Important things to note are:
- Your business must be UK based
- Have been negatively impacted by coronavirus
- Not have been in any financial difficulties at 31 December 2019
- You cannot apply if you have already received a CBILs loan – if you have already received a CBILs loan of up to £50k, you can speak with your lender and ask to transfer this to a Bounce Back Loan
- The government have promised a short online form with little red tape.
The scheme is expected to be launched on 4th May, and we will update in the coming days as and when more information is available.
It remains to be seen if banks can cope with the inevitable demand for this scheme.
Thank You, HMRC
My two biggest adversaries in my career have been banks and HMRC. The banks have done very little to change my view in this crisis but HMRC has done themselves proud. The first payments for the Coronavirus Job Retention scheme have started appearing in businesses owners banks.
We have processed 100’s of claims and only had one issue where the system has caused a problem with the claim.
Well done HMRC great work. Relatively simple guidance, and easy to use portal and a timely payment what more can we ask for.
Support Finder Launched
For anyone unsure what support they may be eligible for, the Government have released the ‘Support Finder’ on the below link which, after answering a few short questions, will give you information on the support available to your business based on these answers.