Businesses looking to claim a ‘bounce-back loan’ will need to submit this prior to the deadline of 31st March 2021. The loan is available for all qualifying businesses in the UK as set out below. Furthermore, those businesses who have borrowed less than their maximum will be able to top-up their existing loan.
- You have a UK based business
- You have been negatively impacted by coronavirus
- Your business existed by 1 March 2020
- Your business was not ‘undertaking in difficulty’ on 31 December 2019 (ie, not in financial difficulty due to pre Covid-19 circumstances)
- Have a tax return or business tax account
Given the above criteria, you may be eligible for the Bounce Back Loan Scheme, which allows SMEs to borrow between £2,000 and £50,000.
As ever, certain businesses are exempt:
- Insurers or re-insurers (but not insurance broker)
- Public-sector bodies
- Grant-funded further education establishments
- State-funded primary and secondary schools
These bounce-back loans are capped at 25% of turnover and have no turnover limit. The government will guarantee 100% of the loan, with no fees or interest in the first 12 months. Loan terms will be up to 10 years, and no repayments will be due in the first 12 months. If you do decide to pay back in the first year, there is no penalty.
In addition, there is a ‘Pay As You Grow’ scheme that will extend repayments of the Bounce Back Loan and include such benefits as:
- Extended loan terms are estimated to halve the average monthly repayment
- The option of interest only repayments
- No impact on credit rating
- Those in financial difficulty can suspend repayments for up to six months
Further details on the scheme are expected shortly. Click here for information on the Covid-19 Support Schemes.
For Business Rates advice, please email firstname.lastname@example.org or call 020 7022 2391.