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Many clients have taken advantage of the Business Bounceback loans not only to provide emergency cash to ride the storm of Corona19 but also to provide money to invest in the business in future. Loans are still open for applications but will CLOSE on 30th November 2020. You can apply if you are a soletrader, partnership or limited company for up to £50,000.
Conditions of application are:
1 - The loan can not be more than 25% of your turnover for your accounting year to 2019 - (estimated is fine)
2 - The loan repayment term is 10 years, with no repayments for the first year.
3 - The interest rate is set at 2.5% by every bank offering the scheme so there is little need to shop around.
4 - Loans are 100% guaranteed by the government so no director will need to offer security.
No cash flow forecasts or accounts are required, simply basic information. More information can be found on:
It appears that banks are offering the loans to their own customers first. So the best port of call is to look on the website of the bank which holds your current account.
The extension to payment terms from the initial 6 year period to 10 years is releatively new and it is not yet known whether all loans will be reverted to the 10 year term automatically or whether you will have to contact your bank personally to request the extended term. We will pass on more information as it is made known.
Natwest:
HSBC:
LLoyds:
Santander:
Royal Bank Scotland:
Conversion from Corona Business Interruption Loans:
From now on all corona loans for under £50,000 will be treated as business bounce back loans. Any loans for more than £50,000 will be considered as Business interruption loans. The difference being that business interruption loans only have a government guarantee of 80% and require a more detailed application process.
If you already hold a business interruption loan then you have until November to be able to convert this to a business bounce back loan free of charge. Speak to your bankers for this to be switched over.
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