Business Bounce Back Loan
May 07, 2020New Small Business "Bounce Back Loans"
100% Govt Guaranteed!
THIS IS GREAT NEWS FOR SMALL BUSINESS IN THE UK THOUGH IT CAN BE A DOUBLE EDGES SWORD. READ THE T&C'S FOR SELF CERTIFICATION.
NOW OPEN FOR APPLICATIONS - FUNDS IN 24 HOURS.
SMALL BUSINESS BOUNCE BACK LOANS
https://www.british-business-bank.co.uk/wp-content/uploads/2020/05/20200502-BBLS-RFP.pdf#page1
Small Business Bounce Back Loans 100% Guaranteed by Govt
Rishi Sunak, the Chancellor of the Exchequer has announced a new fast-track scheme providing loans with a 100% government-backed guarantee for lenders is designed to benefit small businesses.
Key Features of the BBLS
The Bounce Back Loan Scheme is one of a number of government-backed lending schemes designed to support businesses affected by COVID-19. Lending through the Bounce Back Loan scheme is capped at £50,000.
For lending above £50,000 please consider the Coronavirus Business Loan Scheme (CBILS).
- The scheme is a 100% government backed initiative for small businesses.
-You can apply for a loan between £2,000 and £50,000 (up to a maximum of 25% annual turnover), for 6 years.
-No repayments required for the first 12 months, and you won't pay any charges should you decide to repay early.
-interest rate fixed at 2.5%.
-Simple online application, with funds transferred to your bank account within days of being accepted.
Important:
-If you have already received funding under a different government-backed scheme you cannot apply at this time
-If you have completed a Bank of Scotland application for a different government-backed scheme but are yet to receive the funds we will contact you to confirm your options
-Your business will remain liable for repayment of the loan
-We are currently reviewing how we might support existing customers who use their Personal Current Account for business purposes - an update will be provided here later this week.
TO BE ELIGIBLE AND APPLY: YOU MUST BE
1. Using your Bank of Scotland Business Current Account as your main business account
2. UK-based
3. Requiring funding as a result of the coronavirus pandemic.
WHO CAN APPLY
The following industries are not eligible for the scheme:
1. A bank or building society;
2. An insurance company;
3. Public sector organisation, or a state-funded primary or secondary school; or
4. An individual other than a sole trader or a partner acting on behalf of a partnership.
WHAT YOU WILL NEED
1. Permission to apply for this loan from all other account holders
2. Your company registration number
3. Your business account number and sort code
4. Your estimated annual turnover
EXAMPLE
If your annual turnover is £100,000, you could borrow £25,000 over 72 months with the first 12 monthly repayments of £0 and 60 monthly capital repayments of £416.67. Interest is charged each month against the amount outstanding at an annual interest rate (fixed) of 2.5%. This means the first payment of capital and interest would be £469 at month 13 (this represents the highest capital and interest repayment). Total amount repayable by you will be £26,589 (the total amount repayable excludes the Business Interruption Payment).
BE VERY AWARE
These are self certification loans, kinda like the crazy days back in the run up to the Great Financial Crash of 2008. The Corona Police will no doubt raise their head should any of these loans “go bad” and they will be looking out for any fraud committed when they were initially taken out. You will be signing that you are aware of this and take full responsibility for your action.
SMALL BUSINESS BOUNCE BACK LOANS
https://www.british-business-bank.co.uk/wp-content/uploads/2020/05/20200502-BBLS-RFP.pdf#page1
The loans will be interest free and capital repayment free for the first 12 months and the simplified application forms will be self certified subject to not committing fraud. The criteria for eligibility has still not been released, but applications will be accepted from 4th May. Rishi Sunak said the new Bounce Back Loans scheme, which will provide loans from £2,000 up to £50,000, would help bolster the existing package of support available to the smallest businesses affected by the coronavirus pandemic.
The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days, and comes alongside the £6 billion awarded in business grants, supporting 4 million jobs through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms. 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 will be easy to apply for through a short, standardised online application. The loan should reach businesses within days providing immediate support to those that need it as easily as possible.
The Chancellor of the Exchequer, Rishi Sunak, said
“Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis. “This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”
Business Secretary Alok Sharma said
“Our small businesses are vital in ensuring our communities thrive and will be crucial in creating jobs and securing economic growth as we recover. “This rapid loan scheme offers additional protection so small companies across the country can get access to the finance they need immediately, as part of the unprecedented package of support we have put in place.” The scheme will launch for applications on Monday 4 May. Firms will be able to access these loans through a network of accredited lenders. The government will work 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.
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