Coronavirus Bounce Back Loan
Updated 20 May 2020
As a business owner navigating the global COVID-19 pandemic, you can't help but to feel worried about your company's future. The coronavirus has dealt a huge financial blow to your business, and you're not sure where to turn for help.
The good news? The UK government is helping out small businesses by introducing the coronavirus bounce back loan.
Here's a run-down on what the coronavirus bounce back loan is and how you can take advantage of it this spring.
Let's get started!
What is the Coronavirus Bounce Back Loan?
With the coronavirus bounce back loan, you can borrow up to a quarter of your business's annual turnover, with 50,000 pounds being the maximum amount you can borrow. The government will cover the interest of your loan for the first 12 months.
What's great about the loan is that you can simply fill out a quick form to apply for the loan. In addition, your loan should reach you within a 24-hour period.
Lenders also benefit from the loan scheme in that the government is guaranteeing the full amounts of all loans they give to businesses.
Who is Eligible for the Loan?
Any small or medium-sized UK business can apply for the coronavirus bounce back loan. However, if you have already claimed an interruption loan, you cannot receive a bounce back loan.
Still, let's say that you have an interruption loan valued at £50,000 or less. You do have the option of transferring it to the bounce back loan program. The deadline for completing this is the 4th of November.
Also, you cannot take advantage of the coronavirus bounce back loan if you are a state-funded secondary or primary school. The loan is also off limits to any public sector body or grant-funded higher education institution.
In addition, re-insurers, insurers, and bankers cannot access the bounce back loan.
What the Loan Covers
Your business may borrow between £2,000 and £50,000 through the bounce back loan scheme.
You have six years to pay back the loan. However, you don't have to make any repayments for 12 months.
How Your Business Can Access It
To take advantage of the bounce back loan, you must enlist the help of an accredited lender. This type of lender may include a high-street bank, for example.
Also, you must have your annual turnover information, business registration number, and business account number to access the loan.
How We Can Help
If your small business is struggling due to the pandemic, we can guide you in access the UK's coronavirus bounce back loan.
We also offer a wide range of financial services for small and medium-sized businesses. For instance, we can help you to easily file a tax return if you are self-employed. We also offer top-of-the-line bookkeeping and payroll services.
Get in touch with us to learn more about how we can help you to get back on track financially -- and stay that way -- in the months ahead.
How KG Accountants can help
- Help and assist you to fully comply with the government guidelines on managing the risk of Covid19.
- Forecasting – both for your own planning and for the business loan applications.
- Help prepare simple cash flow monitoring tool to ensure your road to recovery is as smooth as possible.
- How to set up a payment plan with HMRC.
- Businesses who have negotiated a rent holiday.
- Our regular blog on how you can get funding during this pandemic.
- Everything you need to know on the Coronavirus Job Retention Scheme (CJRS) and furloughing.
- Managing your personal finances – our financial planning team’s top tips.
- If there’s anything else you need help with not listed above, please ask, and we’ll find a way.
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How we can help
Call us today on 0207 953 8913 or complete our enquiry form in order to book a FREE initial consultation.