The Government has announced a loan scheme to help small and medium-sized businesses affected by coronavirus (COVID-19) to apply for loans of up to £50,000. It will be open for applications on 4th May 2020.
Unlike the Business Coronavirus Interruption Loan Scheme, the Government will guarantee 100% of the loan and there will be a 12 month holiday from fees or interest.
The loans will be over a max period of 6 years and critically for many small businesses, no repayments will be due during the first 12 months. There are still a few details to be worked out but the government has stated it will work with lenders to agree a low rate of interest for the remaining period of the loan.
The scheme will be delivered through a network of accredited lenders but this is expected to be those that are eligible as accredited lenders through the UK Business Bank.
To apply a business must be based in the UK, it must be able to show it has been negatively affected by coronavirus and it must be able to show it was not an ‘undertaking in difficulty’ on 31 December 2019.
“an undertaking in difficulty” is defined in EU Regulations relating to state aid compliance within the internal markets. For Ltd companies established over 3 years, sustained losses exceeding share capital, entering into insolvency proceedings or previous receipt of rescue funds would qualify the SME as an “undertaking in difficulty”. If your business qualified as an “undertaking in difficulty” at the end of 2019, it is unlikely that the Government Covid 19 Bounce Back Loan will be available to your business.
Businesses that have already been approved under the Business Coronavirus Interruption Loan Scheme for a loan under £50k can arrange to transfer this back into the Bounce Back Loan Scheme directly with their lender until the 4th November 2020.
If a business has already been approved for a loan over £50k through the Business Coronavirus Interruption Loan Scheme, it cannot apply for the Bounce Back Loan Scheme.
- What Happens If A Business Cannot Repay Its Deferred VAT Payment to HMRC Due To Covid 19?
- HMRC To Investigate And Impose Penalties And Assessments on Directors Who Have Committed Furlough Fraud
- Are Directors Liable For Unpaid VAT?
- Why Directors, Senior Managers, Bookkeepers And Accountants Should Be Aware Of Their Potential Liability For Fraudulent Trading During Covid 19
- Bounce Back Loans -up to 50k for SME’s
- Wrongful Trading For Directors – Insolvency During Coronavirus
- Criminal Prosecution or Criminal Investigations for Abusing or Fraud Involving The Coronavirus Job Retention Fund
- Commercial Leases – What Does Coronavirus Mean for Rent Payment?
- Can I Use The Clause, Force Majeure To Cancel A Contract My Business Has Signed, Because Of The Covid-19/ Coronavirus Outbreak?
- Latest Government Advice: Covid-19
- VAT Errors – Will I Get an HMRC VAT Penalty?
- Why Designated Origin (DOC) Status Matters – Prosecco Pringles Example
- 1 Year Delay to Construction Industry Reverse VAT Charge Roll Out
- Single Market
- Ready to Change from CHIEF to CDS?
- Minimum Alcohol Pricing in Scotland
- Do you sell goods using online marketplaces in the UK?
- Ben Douglas-Jones QC Consultant Barrister at Altion Law Ltd launches new book on Modern Slavery
- 18 month countdown to implementation of Construction industry ‘Reverse Charge’ for VAT begins
- Join our team
- HMRC Criminal Investigation
- HMRC may require a security deposit for CIS and Corporation Tax from April 2019
- Nowhere to hide for Directors?
- Are you an AWRS trader or are you considering becoming one?
- Unexplained Wealth Orders – What are they?
- What powers do HMRC have to take assets from a business?
- Preparing for No Deal – What should I be doing?
- Inland Customs Clearance and HMRC checking sites – Milton Keynes Seizures and Brexit
- Use of Cash Payments Continue to fall – What is the impact on Money Laundering Risk Assessments and Due Diligence in a cashless society?
- HMRC – Preferential creditor
- Looking for an HMRC appeal Template?
- Why business need social media policies
- New rules for sale and marketing of alcohol in Ireland
- Do you bid for, or hold any Central Government Contracts? Why your payment terms for suppliers matter.
- Making Tax Digital – What is it and is your business ready?
- Anthony Galvin speaks as a key panellist at the Midlands Adjudication Society.
- New Changes to Post Duty Point Dilution For Wine and Made-Wine Producers
- New Electric Vehicle Charging Point installed