This is the latest scheme available today. It enables small businesses to obtain 100% Government backed loans between £2,000 and £50,000. These loans will be payment free and interest free for 12 Months and will not incur any set-up fees. They can be repaid over 6 years; banks cannot charge more that 2.5% interest once the interest free period is over. These loans can also be repaid early without early settlement fees.
Who can apply?
The scheme is open to small SME’s, partnerships and sole traders.
What’s the criteria for obtaining Bounce Back loans?
How loan will it take to receive the money?
The aim is for the funds to be transferred to your business bank account “within days”, rather than 6 days under the CBILS scheme
Outstanding taxes, PAYE & corporation tax
For any outstanding tax liabilities that you can’t afford to pay or any PAYE or Corporation tax bills due within the next 14 days, HMRC have set up a dedicated helpline to arrange some more time to pay or set up a payment plan. The number is 0800 0159 559. The line is open Mon-Fri 8am to 4pm and will probably be least busy before 9am.
Is the application process easy?
Yes, the online form consists of 7 simple questions, you effectively self-certify your application. CBILS (Coronavirus Business Interruption Loan Scheme) require much more financial details, affordability tests and projected cashflow forecasts, hence why many applications have failed or been slowed down significantly.
Are bounce back loans really 100% Government backed?
Yes, the bank should not be asking you to sign any personal guarantees for the bounce back loans, whereas only 80% of a CBILS loan is guaranteed.
Where can I apply for the loans?
Here’s the link