The Government’s new Bounce Back Loans scheme allows businesses to borrow between £2,000 and £50,000 and access the cash within days. Loans will be interest free for the first 12 months, and is now open for businesses to apply online through a short and simple form.
The Government, which has been consulting extensively with business representatives about the design of the new scheme, will provide lenders with a 100% guarantee for the loan and pay any fees and interest for the first 12 months. No repayments will be due during the first 12 months.
The loans are easy to apply for through a short, standardised online application. Loans should reach businesses within days providing immediate support to those that need it as easily as possible.
The scheme opened for applications on Monday 4 May. Firms can access these loans through a network of accredited lenders. The government is working with lenders to ensure loans delivered through this scheme are advanced as quickly as possible and agree a low standardised level of interest for the remaining period of the loan.
The new scheme run alongside the existing Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).
The Government is also taking additional steps on the Coronavirus Business Interruption Loan Scheme (CBILS) to ensure that lenders have the confidence they need to process finance applications quickly, including removing the per lender portfolio cap for the government guarantee, and changing the viability tests that so that all banks will need to assess is whether a business was viable pre COVID-19.
Details of some of the key Government support packages for businesses, employees and self-employed are outlined below:
1. Coronavirus Bounce Back Loans
The Bounce Back Loan scheme is now open for applications. Key details:
Details on how to apply are here: https://bit.ly/BounceBackLoanApply
2. Small Business Grants
To support eligible businesses in England to access the small business grants, BEIS have created a toolkit with regional graphics and messaging. A new discretionary fund has also been announced, which will help small businesses with ongoing fixed property related costs. Please find further details here: https://bit.ly/BizGrantTopup.
Businesses can check eligibility using the financial support checker tool: https://bit.ly/3fb6ubh
3.HMRC Tax credits
Tax credits customers will continue to receive payments even if working fewer hours or furloughed due to COVID-19. Please find further details here and circulate amongst your employees: https://bit.ly/TaxCreditsPN.
4. HMRC Self-employment eligibility tool
This week HMRC will start contacting customers who may be eligible for the new Self-Employment Income Support Scheme. The scheme will allow customers to claim a taxable grant worth 80% of their average trading profits up to a maximum of £7,500, equivalent to three months’ profits.
Customers can claim if they’re a self-employed individual, or a member of a business partnership, and their business has been adversely impacted by coronavirus.
Customers can check eligibility using the self-employed checker tool: https://bit.ly/SelfEmployTool
