*NEW – Bounce Back Loan* Live as of 4th May 2020 – what is it? How does it work? Who does it? all valid questions, which a lot of business owners will be asking themselves. It’s the Government’s latest initiative in their attempt to support small/medium sized businesses financially
You can apply regardless of what type of business you own or run, Sole traders, partnerships, Ltd companies, LLP companies, not for profit organisations…
There are some key features to this new scheme designed to help businesses bounce back:
No repayments or interest payments for 12 months
You can Borrow from £2k to £50k – but this cannot be more than 25% of last years turnover.
100% of the money is Guaranteed by the Government
100% is responsibility of the borrower
Apply through your bank
Rate of interest is 2.5%
Repay over 6 years
No fees for paying off early
Lenders are not allowed to take Personal guarantees
This particular loan scheme (vs the CBILS – Corona Virus Business Interruption Loan Scheme) has a speedy application process, (only a few questions), less underwriting and subsequently this will mean that business owners will get their money quicker. There are a few things you need to be aware of, the business must be trading as of the 1st March 2020 and at least 50% of your income must be from trading activity, additionally your business should not have been in any financial difficulty as of 31st December 2019. You should also have a business that has been actively disrupted by the Corona Virus. There are some industry types that are excluded:
Further education establishments in they receive grant funding
State-funded primary and secondary schools.
Remember – this is a LOAN not a Grant! Make sure it is right for you and your business before applying. There are only a few banks offering the scheme presently, this could change, look below to see if your bank is there:
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