**BREAKING 17 December 2020**
CBILS and Bounce Back Loan application deadline extended to 31 March 2021
1 June 2021 Pay As You Grow Options
Check out our blog of 5 June explaining the new Pay As You Grow options for delayed repayments and extended repayment terms.
Fantastic announcement today (27 April 2020) on the new 100% government-backed Bounce Back loans.
The Chancellor made the announcement following pressure from business leaders, as it’s clear that the current Coronavirus Business Interruption Loan Scheme is inaccessible for many small businesses (more on the CBILS loans below).
Small businesses who are the backbone of our economy, and make up to 99% of all UK businesses.
What are the new Bounce Back loans?
- Loans are 100% guaranteed by Government
- Banks already accredited to offer CBILS loans should be able to offer Bounce Back loans
- Businesses can borrow between £2,000 and £50,000
- No repayments in the first 12 months
- Interest free for the first 12 months
- Interest capped at 2.5% after that
- Loan term can be up to 6 years
Who can apply?
- Small companies, sole traders and partnerships can apply
- You need to be based in the UK
- You are negatively affected by COVID19
- You were not classed as an undertaking in difficulty* on 31 December 2019
- You can borrow up to 25% of 2019 revenue or £50,000, whichever is higher
*undertaking in difficulty = accumulated losses are more than half of the share capital of the company
How do I apply?
- You can apply from 9am Monday 4 May 2020
- There will be a network of accredited lenders
- You can apply through your usual online banking site
- Short 2 page self-certification online application form, making it easy to apply
- Cash should be available within 48 hours of your application
What are the repayment terms?
- These have been extended so you can now repay over 10 years instead of 6 years
- You can also take a payment holiday
- Also negotiate an interest only repayment period
What info do I need to apply?
- You need only basic info to apply, as you’re applying with your usual bank, so they have all your info.
- Have your bank account number, sort code and business post code ready.
- Be ready to enter your annual turnover and how much you want to borrow.
- Be prepared to answer yes/no to questions about your situation and your understanding of the Bounce Back loan.
What if I’ve already received other COVID19 grants?
- The Bounce Back loans are in addition to other funding such as Business Grants, Furlough Grants, Self-Employed Grants
- But bear in mind that grants don’t need to be paid back. the Bounce Back and CBILS loans do need to be repaid
How does the Bounce Back loan work with CBILS?
- If you’re in the middle of an application for a CBILS loan, you can’t apply for a Bounce Back loan too.
- If you already have a CBILS loan, you can convert this to a Bounce Back loan, and you have until 4 November 2020.
I’ve got the Loan what do I do now?
- Congratulations on receiving your loan. But have you thought about what you’ll do with it?
- Do you know if it’s enough, or not enough to see you through?
- Check out our blog How long will my loan last for useful tips.
And here’s a little on the Coronavirus Business Interruption Loan Scheme (or CBILS) for reference
The idea was to provide businesses with easy to access funding, but we’re finding the loans very slow and difficult to access.
Some of the initiatives include:
- 80% guarantee from the Government
- 12 months’ interest free terms
- Low interest rates (Bank of England base rate is currently 0.1%)
- Fast track to approve lenders onto the scheme
- Apply via your current bank in the first instance.
Info needed for your CBILS loan application
- Last 3 years full accounts with detailed P&L
- Last 12 months business bank statements (Lloyds Bank usually need 6 months personal as well)
- Up to date management accounts
- Aged debtor and creditor lists
- Confirmation of any outstanding debt (provider, term, repayment)
- Statement of personal assets, liabilities, income and expenditure from all Directors
- Home addresses of all directors/ shareholders
- Paragraph on how Covid-19 has affected the business and what the funds will be used for
- 12 month cash flow forecasts
We’re here for you
Please get in touch if you’d like any help with your Bounce Back or CBILS loan application
- Check out our main COVID-19 Support page
- Please also join our private private Facebook group for small businesses
- Sign up for our Weekly Webinars.
- Sign up for our regular Newsletters.
Please get in touch on any of the above, or if you’d just like a chat, or call the office on 01432 273400.
We’re all working from home now, but your message will be passed straight to the right team member.
If you’d prefer to book a time to speak to me, I’ve freed up more time in my calendar for 30 minute zoom calls.
Please find and book a slot here.
You can also call, text or WhatsApp me on 07813 303849.
Stay Strong. Stay Safe
