Another day, another government announcement. This time with a quirky title; Bounce back Loans.
While the news of further support for small businesses is in general a welcome one, it may be wise to stop, take a step back and think hard about the decision to apply. Unlike some of the other support packages this is a LOAN and not a grant. Although the repayments are delayed and there are promises of low rates you need to think about where we may be when the payments do start. The future is uncertain so please consider professional financial advice before signing up to any loan schemes.
What is the scheme?
Businesses are able to borrow between £2000 and £50000
Loans are interest free for the first 12 months
No repayments will be due during the first 12 months
Loan terms will be up to 6 years
The information from the government states that they will agree with lenders a low standardised level of interest for the remaining period of the loan however this is not yet agreed.
How do I apply?
There will be a short standardised form available on-line
The scheme opens at 9am on 4th May 2020
Access to loans will be through a network of accredited lenders
Who can apply?
Businesses that are
Based in the UK
Negatively affected by coronavirus
Not an ‘undertaking in difficulty’ on 31 December 2019
You cannot apply if you are already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS). However if you have already received a loan of up to £50,000 under CBILS and would like to transfer it to the Bounce Back Loan scheme you can arrange this with your lender until 4th November 2020.
I hope this quick summary helps to clarify the current business support offer, as ever I am here to help where I can.
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