As you are aware a new government initiative to help small firms, sole traders and partnerships, termed the “Bounce Back Loans “ programme, is due to be rolled out on Monday. It carries high hopes for many businesses who are anticipating that this new initiative will attempt to address some, if not all, the shortcomings of the earlier scheme under the CBIL process.
We have tried to get as much information as is available of today ( 30/4 ), and put to it in a easily readable format which hopefully will be helpful, please come back to us with any questions.
We take great pride in informing all our clients that we have been working hard behind the scenes, putting final touches to our ongoing search to find a n all-encompassing fast , efficient and cost effective facility for our clients , enabling them to have access to a wide range of funding, grants and equity finance indeed from over a 1000 sources of lenders. We now are delighted to inform all our clients that we have partnered up with Swoop Funding who have been approved by the treasury in March 2019 to assist with competitive funding options and this facility will give our clients a fantastic advantage in securing the best funding option available out there, with all the help and guidance at their disposal, see details at our site www.shaikhandcoaccountants.com, under the tab “Looking for Finance”, of course we are here ready and eager to help all our clients so if it is of interest we will complete the application for you, just contact us.
And now about Bounced loans.
What is it?
- Billed as “fast-tracked” lending to smaller companies
- Govt guarantee for 100% borrowed
- Max borrowing of 25% of Turnover up to £50,000
- Loan term – 6 years
- Capital repayment holiday for first 12 months
- Govt pay interest for the first 12 months
- Post first 12 months APR – govt negotiating low rate with banks
- Announced on 27th April
- “Go Live” set for Monday 4th May
- Latest info: Will be distributed by some but not all of CBILS lenders
- Providers not yet clear on process/product/distribution
- criteria to be met.
- Less onerous than CBILS
- The company is based in the UK;
- The business has been negatively affected by coronavirus;
- The company was not an ‘undertaking in difficulty’ on 31 December 2019 “Undertaking in Difficulty” definition Stems from EU state aid regulations, likely to be one used by HMRC for Enterprise Investment Scheme rules (EIS) i.e. “any company is ‘in difficulty’ when it meets the criteria for insolvency under the Insolvency Act 1986, such as: – the company is unable to pay its debts as they fall due; – “the balance sheet test” – value of assets is less than liabilities (including its contingent and prospective liabilities)
Bounce Back not available under CBILS but can refinance first £50k of CBILS before Nov 4 2020
Funds in account “within 24 hours” of successful application
Process less onerous than CBILS so should increase speed – we advise cautious optimism given, that normally the banks would take around 12 months to get ready and market a new product, here they are asked to get it ready within weeks.
Remember you and your family’s health is the most important thing. Stay strong and safe. We are here to help and support you. Together we will get through this.