Update – 28th April 2020
COVID-19
Update 28 April 2020
Bounce Back Loan
What is it?
A new loan scheme for between £2,000 and £50,000 up to a maximum of 25% of turnover. The loan term can be up to six years.
What are the terms?
-Interest free for first 12 months
-No repayments due in first twelve months
-The government will guarantee 100% of this. This means no personal guarantees are required.
Are there any eligibility criteria?
Yes. You must be
-Based in the UK
-Negatively affected by COVID 19
-Not an ‘undertaking in difficulty’. This means the company does not have negative reserves/negative balance sheet* that exceed 50% of issued share capital as at 31 December 2019
-and that the loan is used for business purposes.
*We don’t know if ‘in credit’ directors loan accounts will be added back in this instance?
Can I apply for this if I have already received a loan under CBILS?
No, you cannot but if you have a CBILS loan under £50,000 you can ask for it to be transferred into the Bounce Back scheme.
How do I apply?
You can apply on-line to one of a series of accredited lenders.
Do I need to provide detailed forecasts?
It was stated on 27 April when this was announced that banks will not require business plans or forward financials, although this is not highlighted on the government page.
When is it available?
You can apply from May 4th, 2020 and should receive the money “within days.”
Government Link https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan
For copies of our previous updates please e-mail either
Previous updates
18 March, 19 March, 21 March,
24 March, 26 March, 27 March,
6 April,9 April, 10 April,24 April
This article is written for the general interest of our clients and is not a substitute for consulting the relevant legislation or taking professional advice. The authors and the firm cannot accept any responsibility for loss arising from any person acting or refraining from acting on the basis of the material included herein.
