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Update: The Bounce Back Loan scheme has been extended until January 31st 2021.
Chancellor Rishi Sunak unveiled a 100% government backed loan scheme for small and medium-sized businesses offering up to £50,000 of fast-track finance for those affected by coronavirus (COVID-19). This loan scheme started on 4 May 2020 and will continue till 31 January 2021.
How Much Loan Will I Get?
The scheme allows small and medium-sized businesses to borrow between £2,000 and up to 25% of your turnover. The maximum loan available is £50,000.
As an assurance, the government guarantees 100% of the loan and you do not have to pay any fees or interest for the first 12 months. After 12 months the interest rate will be 2.5% a year.
What Are the Eligibility Criteria?
You can apply for this loan if your business is based in the UK, has been negatively affected by coronavirus and was not an ‘undertaking in difficulty’ on 31 December 2019.
Contrarily you are not eligible for this scheme if your business falls under categories of banks, insurers and reinsurers (but not insurance brokers), public-sector bodies, state-funded primary and secondary schools.
Also, you cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) or COVID-19 Corporate Financing Facility.
If you’ve already received a loan of up to £50,000 under one of these schemes you can transfer it into the Bounce Back Loan scheme. The deadline is 4 November 2020 to arrange this with your lender.
Know further information by contacting accountants in London.
How Can I Apply for the Loan?
The loan will be delivered through a network of accredited lenders so you can contact your local small business accountant or Taj Accountants in London for any assistance. There are 11 lenders participating in the scheme including many of the main retail banks. You should approach a suitable lender yourself via the lender’s website. Click here contact a lender.
The lender will ask you to fill in a short online application form and self-declare that you are eligible. Also, the lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed.
How Long the Loan Is for?
The government has set the loan terms up to 6 years and provided assurance to work with lenders to agree upon a low standardized level of interest for the remaining period of the loan. The Chancellor provided further assurance to deliver the loan within days providing immediate support to those that need it as easily as possible.
More Information
The government has set the loan terms up to 6 years and provided assurance to work with lenders to agree upon a low standardized level of interest for the remaining period of the loan. The Chancellor provided further assurance to deliver the loan within days providing immediate support to those that need it as easily as possible. After assessing your eligibility, you are permitted to get access to the cash within a few days or even within 24hours.
Further Assistance
The Bounce Back Loan Scheme aims to provide vital financial injection into small businesses in order to keep their functionality flowing. This scheme is an additional boost to the government’s coronavirus support schemes.
Taj Accountants is working to provide you guidance through all the measures so you can stay stress free regarding your financial matters. As your reliable accountant in East London we assure you to provide online and offline support and services at your convenience.
FAQs
What Is the Application Process for This Loan?
First, you need to find an accredited lender at your convenience.
Secondly, You need to approach through its website. Then you need to fill an online form that certifies your eligibility for a loan under BBLS. Considering your eligibility, you’ll be subject to appropriate customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks.
Now, the lender gets the authority whether to provide you the loan or not based on your eligibility. In this case, lenders are not allowed to take any personal guarantee under this scheme and they’re also not allowed to take any recovery actions against your personal assets.
Lastly, you can look for other lenders if your current lender turns you down. Lenders are bound to make fast decisions regarding the process.
DISCLAIMER: The purpose of the blog is to provide information and insight regarding the situation. The readers must contact experts before making any decisions based on the information. We highly appreciate you to contact Taj Accountants for further assistance.
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