Yesterday the Chancellor, Rishi Sunak, introduced us to a new addition to Government funding products designed to help small businesses stay afloat through the next few months. Government has recognised that although we appear to have passed the peak of the Covid-19 pandemic and that further financial help is needed.
The Bounce Back Loan Scheme will go live on Monday 4th May 2020 to provide fast track funding of between £2,000 and £50,000 to small and medium sized businesses.
The loans will be 100% guaranteed by the Government and be free of interest and charges for the first twelve months. The Loan term will be up to six years and the government will work with lenders to agree a low rate of interest after the first year. You can apply for a loan if your business is based in the UK, has been affected by the coronavirus and was not an “undertaking in difficulty” at 31st December 2019.
We do not yet know how maximum the loan value will be calculated. We understand that the proposed application for will be a simple two paged self-assessed document. Whilst the scheme will be delivered through a network of accredited lenders, the Government is committed to ensuring that applications are dealt with speedily and funds made available in days rather than weeks.
If you have already received funding from the Coronavirus Business Interruption Loan Scheme then you are not eligible for this new scheme although you will be able transfer up to £50,000 of your CBILS loan to the Bounce Back Scheme until 4th November 2020.
We will keep you informed but suggest that you wait until next Monday to access www.gov.uk/coronavirus/business-support. At Jack Ross, we are here to help, and so please contact us if you need help with your application.
Whilst writing, you may be wondering why you have not yet received any correspondence from us of the information required to prepare your tax return for the year ended 5 April 2020. Please rest assured that this is in hand as we are currently working on a system to enable us to collect information electronically, due in part to the social distancing measures in place. You will hear from us again soon but until that time I hope you keep well and remain safe.