When Rishi Sunak announced the government funded Bounce-Back loans last week, they were billed as ‘fast-track’ lending for small businesses.
How fast can you get one? Do you qualify?
Jump into all of the answers in our blog below!
Fast Tracked Business Support Loans
The Bounce Back Loans are 100% government guaranteed, meaning that you can access them quickly!
They were introduced due to the slow turnaround of the Coronavirus Business Interruption Loans offered by banks.
These new fast tracked loans mean that small businesses can borrow a maximum of 25% of their turnover, up to £50,000, for a 6 year period.
The minimum businesses can apply for is £2,000.
The first 12 months of the loan is a capital repayment holiday, and the government will pay interest on the first 12 months also.
After that, the government is securing a flat rate of 2.5% interest with banks.
There will also be no early repayment fees.
Do You Qualify For The Bounce Back Loan?
In order to qualify for the loan your businesses will need to be:
- Based in the UK and established by 1st March 2020.
- Negatively impacted by coronavirus.
- Not ‘undertaking in difficulty’ on 31st December 2019.
After applying successfully HMRC claim that the funds will be in your account within 24 hours!
What If You’ve Been Approved For A Different Loan Scheme?
The Bounce Back Loans are not available under the Coronavirus Business Interruption Loan Scheme.
Therefore if a business has already been approved for one of these CBILS loans, then they will be allowed to refinance the first £50,000 of the loan into a Bounce Back Loan before Nov 4th 2020.
Remember, after applying successfully HMRC claims that the funds will be in your account within 24 hours.
The form is a simple 7 question application form, and is relatively easy to complete.
We hope this blog has helped you and your business, keep updated with our future business blogs by following us on Facebook and Twitter below.
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