X

Contact Kirk Rice

Kindly complete the form below to send an enquiry. Your message will be sent to one of our Accountants or Financial Planners who will respond to you within 24 hours.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service
X

Request Appointment

Please complete this form to request an initial appointment at our cost.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service
X

COVID-19 Information Hub

Coronavirus Business Bounce Back Loan Scheme

In his announcement on Monday 27 April, the Chancellor Rishi Sunak announced another new government-backed lending scheme, this time targeted at the smaller businesses. The fast-track finance scheme will provide loans with a 100% government-backed guarantee for lenders under the name of The Bounce Back Loan Scheme.

The scheme provides loans of up to £50,000 and has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days. It will launch on 4 May 2020.

Updated 4/5/20

Government guidance:

The Bounce Back Loan scheme helps small and medium-sized businesses to borrow between £2,000 and £50,000.

The government guarantees 100% of the loan, and there won’t be any fees or interest to pay for the first 12 months.

Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree on a low rate of interest for the remaining period of the loan.

The scheme will be delivered through a network of accredited lenders.

Eligibility

You can apply for a loan if your business:

  • is based in the UK
  • has been negatively affected by coronavirus
  • was not an ‘undertaking in difficulty’ on 31 December 2019

Who cannot apply?

The following businesses are not eligible to apply:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • state-funded primary and secondary schools

If you’re already claiming funding

If you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.

How to access the scheme

The full rules of the scheme and guidance on how to apply is available on the British Business Bank website.

Kirk Rice commentary:

This is a welcome addition to the portfolio of financial support options made available to smaller businesses, and finally provides some much simpler options for easing cash flow difficulties. The speed with which the cash will supposedly be delivered will hopefully provide some respite for small businesses who have so far found CBILS too demanding to negotiate.

HM Treasury says that the new micro business loan scheme will open for online applications on 4 May and will deliver cash to successful applicants within 24 hours.

  • All firms trading as of 1 March will be able to get cash
  • Banks will no longer require forward financials or business plans
  • The microbusiness Bounce Back Loans scheme is capped at 25 per cent of turnover and promises a streamlined application process
  • The interest rate for the facility is set at 2.5% per annum, meaning businesses will all benefit from the same, affordable rate of interest

The British Business Bank will administer the Bounce Bank Loans, which will be offered through the 50+ banks currently taking part in CBILS. To persuade banks to lend the money, the taxpayer will cover 100 per cent of their losses if a borrower defaults. Lenders are not permitted to take personal guarantees or take recovery action over a borrower’s personal assets (such as their main home or personal vehicle). Early repayment is also allowed, without any fees for doing so.

With loans capped at 25% of turnover, if your business is growing and you need cash, it would seem to be important to get up-to-date financials available as soon as possible!

We’ll be updating this page for the answers as and when they become available, so please, do check back regularly for further information.

 

Got a question? Ask us using the form below.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service