**NEW – Bounce Back Loan** This is for information purposes. I am NOT selling loans!
The Bounce Back Loan Scheme is now live!
As of 9am 4th May 2020, The Government launched its latest initiative in their attempt to support small/medium sized businesses financially.
You can apply regardless of what type of business you own or run, Sole traders, partnerships, Ltd companies, LLP companies, not for profit organisations…
There are some key features to this new scheme designed to help businesses bounce back:
- No repayments or interest payments for 12 months
- You can Borrow from £2k to £50k – but this cannot be more than 25% of last years turnover.
- 100% of the money is Guaranteed by the Government
- 100% is responsibility of the borrower
- Apply through your bank
- Rate of interest is 2.5%
- Repay over 6 years
- No fees for paying off early
- Lenders are not allowed to take Personal guarantees
This particular loan scheme (vs the CBILS – Corona Virus Business Interruption Loan Scheme) has a speedy application process, (only a few questions), less underwriting and subsequently this will mean that business owners will get their money quicker.
There are a few things you need to be aware of, the business must be trading as of the 1st March 2020 and at least 50% of your income must be from trading activity, additionally your business should not have been in any financial difficulty as of 31st December 2019. You should also have a business that has been actively disrupted by the Corona Virus.
There are some industry types that are excluded:
- Public-sector bodies
- Further education establishments in they receive grant funding
- State-funded primary and secondary schools.
Remember – this is a LOAN not a Grant! Make sure it is right for you and your business before applying.
There are only a few banks offering the scheme presently, this could change, look below to see if your bank is there:
If your bank doesn’t do the loan – then hold steady, you have two options:
1) Wait to see if they become a registered lender
2) Switch bank accounts to a bank that is taking applications for the bounce back loan. Switching Bank account is easy Takes 7 working days from start to finish. Read my blog about switching bank accounts here.
– Check first to see if the ‘New Bank’ allows you to apply for the bounce back loan – they may require you to bank with them for a certain amount of time first.
The loan itself would be great for your business for a number of different reasons, help with wages, rent, marketing costs (to help you ‘bounce back’), pay off more expensive debt…the list goes on, keep an eye on my YouTube where I will be posting soon about my top 10 ways it could help and top 10 ways it may not… Subscribe to It’s The Money Guy YouTube