On 4 May 2020, Chancellor Rishi Sunak launched yet again another scheme to support the small businesses during these catastrophic times. Under these schemes, Government will provide 100% guarantee to lenders, thus will ensure least paperwork to be provided to lenders. Lenders will provide loans up to 25% (between £2,000 and £50,000) of business turnover at an interest rate of 2.5%. However, this interest and any associated fees will be paid by the government for the first 12 months. To provide even further help, the Government has decided that there will be no repayments for the first 12 months. These loans will be made for a fixed term of 6 years.
How to Apply
Small business owners including self-employed can apply online to accredited lenders (List of accredited lenders) by filling out a simple online form, with only seven questions. All eligible companies will be subject to standard customer fraud, anti-money laundering (AML) and Know Your Customer (KYC) checks prior to any loan being made.
Who is Eligible
Your business must be able to self‑declare to the lender that it:
- has been impacted by the coronavirus (COVID-19) pandemic
- was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)
- is engaged in trading or commercial activity in the UK and was established by 1 March 2020
- is not using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility
- is not in bankruptcy or liquidation or undergoing debt restructuring at the time it submits its application for finance
- derives more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges)
What Affinity Associates says
Being an experienced and well-established practice of Chartered Accountants in London for many years, we provide robust advice to our clients as and when requested. BBLS will mostly support all high street business to obtain much needed cash injection during and after the pandemic has made its way out. Many small businesses and Self-employed have already taken benefits from Covid-19 Job Retention Scheme to support their employees, however, they are not able to do much for their own survival. Affinity Associates are committed to assist you in evaluating your needs and apply for maximum possible government support. Call now for consultation on 02089032077 or submit your request in contact us.