It’s been a tough time, both financially and operationally, for the UK’s small businesses. So, getting an injection of additional funding into your business may be something that would greatly improve your cashflow, working capital and ability to ride out the Covid crisis.
The Bounce Back Loan scheme provides loans to small businesses that have been adversely affected by the pandemic - providing a financial lifeline for many. The scheme has been extended until spring 2021, increasing the window for you to apply. In addition, Bounce Back Loan borrowers will now have the option to tailor payments according to their individual circumstances with the option to delay all repayments for a further six months.
You should speak now to your accountant and get help if you are unable to apply yourself.
The new conditions, called the Pay As You Grow approach, offer the following concessions:
To extend the length of the loan from six years to ten tears.
Allow borrowers to make interest-only payments for six months, with an option to use this facility up to three times throughout the loan.
Pause repayments entirely for up to six months.
The Chancellor has now extended the flexibility of the third option, which will be available to all from their first repayment, rather than after six repayments have been made. This will mean that businesses can choose to make no payments on their loans until eighteen months after they originally took them out. (Prior to these changes, no repayments on Bounce Back Loans were required for twelve months)
Details of Bounce Back Loan scheme:
Here’s your lowdown on how the Bounce Back Loan scheme works:
What's the scheme? The Bounce Back Loan scheme provides loans to small businesses that have been adversely affected by the pandemic.
What can I claim? Bounce Back Loans offer qualifying small businesses the chance to borrow between £2,000 and up to 25% of their turnover, with a maximum loan amount of £50,000 available.
Who is eligible? You can apply for a loan if your business:is based in the UKwas established before 1 March 2020has been adversely impacted by the coronavirushas not already applied for a CBIL loan or other government finance
When does the scheme end? - Applications for the Bounce Back Loan scheme are now open until 31 March 2021 – so now’s your chance to apply.
Talk to your accountant first but we are more than happy to assist any established business seeking to apply for the Bounce Back Loan scheme.
If your business is struggling financially due to the Covid crisis, and you need extra funding, come and talk to us about your finances and we will look in depth at your circumstances and discuss how we can help you steer out of the position you find yourself in. We can explain the Bounce Back Loan scheme, but first we will see if there are other things you can do to stabilise your business and plan for the post-Covid future. This may be just the time to do some serious number crunching and seeking help if you are feeling financially overwhelmed.