We will be discussing this on the first part of the webinar on Wednesday so don’t miss out, but as you know the new Bounce-Back loan has been launched today! Register HERE.
The scheme has officially gone live with reports saying that Barclays had 200 applications within the first minute of going live and Lloyds receiving 5,000 applications within three hours – Just to clarify, these are applications NOT pay-outs. The money is expected to be available “within days” and once the money is available, successful applications to pay-out stage should take 24-48 hours
Whilst these loans are aimed at the smaller businesses, there is no limit to what business can apply for a Bounce-Back loan – BUT, the business must have been trading on 1st March 2020 and not have been in financial difficulty.
Basically, the government are trying to make sure that the loan is for businesses where COVID-19 has had an impact and not for businesses just looking to take advantage of a cheap loan.
The application is said to be 7 questions on an online form including information about turnover, tax details, bank account and how the lockdown and COVID-19 has impacted your business.
We have been advised of the below terms
- The government will cover the cost of fees and interest for the first year.
- All lenders will charge a flat rate of 2.5% interest rate.
- The loan will be available up to a 6 year term period.
- No early repayment fees.
- Borrow amount is up to £25% of your turnover in the 2019 calendar year, up to a maximum of £50,000.
- If your business was established after 1 January 2019, you should apply the 25% to your estimated annual turnover from the date you started your business.
- No personal guarantee or security will be required by the borrower – the loan is 100% secured by the government.
If you wish to apply for the “Bounce Back Loan” you will need to speak with your bank to begin the process. Here are the application forms of those providers who can assist you. Providers are mainly only accepting (or prioritising) existing customers first.
As this is an online form, you will most likely need to log into your online banking and then submit the form from there.
Our Corporate Finance team at Nordens are available should anyone have any questions or need any kind of support. Contact us on 02085300720 or email enquiries@nordens.co.uk
