Updated 15 May
View our other COVID-19 guidance pages:
- COVID-19 – Resources, Guidance and Help
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Job Retention Scheme (CRJS)
- Small Limited Companies and Covid-19
- Owner/Manager Directors can Furlough – New Guidance
- Bounce Back Loans
Bounce Back Loan Applications now live – see here.
In the latest move by HM Treasury to assist businesses through the Coronavirus lockdown Rishi Sunak, Chancellor, has announced further assistance for small businesses to borrow.
With the original Coronavirus Business Interruption Loan Scheme (CBILS) receiving mixed reviews and businesses tuning over less than £100k per annum finding it almost impossible to access funds, the Government launched the Bounce Back Loan Scheme.
This scheme will allow businesses that have been affected by Coronavirus to apply for loans of between £2,000 and £50,000.
The key points are:
- The loan is 100% guaranteed by the government – significantly reducing (perhaps even eliminating) the need for credit checks;
- There will be no interest for the first 12 months;
- There will be no fees for the first 12 months;
- Loan terms will be up to 6 years
- has been impacted by the coronavirus (COVID-19) pandemic
- was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)
- is engaged in trading or commercial activity in the UK and was established by 1 March 2020
- is not in bankruptcy or liquidation or any form of debt restructuring
- derives more than 50% of its income from its trading activity (requirement does not apply to charities or further-education colleges)
To be eligible you must be a business that:
- Is based in the UK;
- Has been negatively affected by Coronavirus
- Was not an ‘undertaking in difficulty’ as at 31 December 2019
It is important to note that if you have already claimed under CBILS you are not eligible for Bounce Back. If however your CBILS loan is less than £50,000 you can apply to transfer to this scheme before 4 November 2020.
You can find a list of the accredited lenders who can offer you this scheme here. If you do not bank with one of these organisations then you will need to set-up a temporary ‘feeder’ account that will allow the provider to issue funds for you to transfer to your own account.
Please do remember that this is a loan not a grant. The business remains 100% liable for the debt. The lender will follow all of it’s usual debt recovery procedures before it can call on the government guarantee.
As you will appreciate the situation is constantly evolving but to speak to our specialist team please contact ATN on 01474 326224. Alternatively, visit the website; tweet @atnpartnership or email firstname.lastname@example.org