Coronavirus – New 100% Government backed loan scheme announced
In a new announcement on Monday from Chancellor, Rishi Sunak, a new Government backed Bounce Back Loan Scheme has been made available for small businesses affected by the Coronavirus outbreak, including sole traders, entrepreneurs and micro-firms.
In a new announcement on Monday from Chancellor, Rishi Sunak, a new Government backed Bounce Back Loan Scheme has been made available for small businesses affected by the Coronavirus outbreak, including sole traders, entrepreneurs and micro-firms. Below we've provided a summary of the key points as we know them, and we'll issue further information as soon as it is made available to us:
You'll be able to apply for loans from £2,000 to £50,000 up to the value of 25% of turnover.
The loans will be 100% backed by the Government.
No interest will be payable for the first 12 months.
No repayments will be required for the first 12 months with loan terms available up to 6 years.
Applications will be open to be made via a simple online form, which will go live on Monday 4th May.
Funds will be provided through approved lenders and could be in your bank account within as little as 24 hours.
If you have already applied for the Coronavirus Business Interruption Loan Scheme (CBILS), you cannot apply for the new Bounce Back Loan Scheme, however you can speak to your lender about transferring your CBILS to the new scheme before 4th November 2020.
FINANCIAL SUPPORT FOR BUSINESSES For information on all the funding that the Government has made available for all businesses across England, take a look at our article published in a special Coronavirus edition of GM Business Connect magazine by clicking below.
FURTHER UPDATE ON SELF-EMPLOYMENT INCOME SUPPORT SCHEME We have been investigating the process required for LWA clients who are self-employed and want to claim the Government grant via the Self-employment Income Support Scheme. So far we know that you will need to do this via your own Government Gateway. We are waiting to hear whether a link will be available on the agent portal and will keep you updated, however in the meantime, please be prepared to apply on your own Government Gateway. If you have any queries, please do not hesitate to contact our Tax Manager, Nickie Antley-Slater, at Nicola@lwaltd.com.
BE AWARE OF CORONAVIRUS FRAUD There is an increasing amount of fraudulent activity where opportunists are using Coronavirus to scam victims out of money and into revealing vital financial information. The latest alert notified by Police alludes to free groceries from Morrisons including a very legitimate looking link. It is worth noting to check that the link starts with 'https' where the 's' stands for secure, and / or telephoning the supermarket customer services team before clicking any links.
A FEW POSITIVE WORDS FROM A CLIENT These past couple of months have caused a great deal of worry for many of us in numerous areas of our lives. It’s finally great to hear some positive news and to know that the Government support is filtering through to businesses, as one of our clients tells us below. We will all get through this together.
CONTACT US If you'd like further information on accessing the support made available by the Government for businesses or have any concerns about the impact of Coronavirus on your business, please contact one of the team here at LWA. You can reply to this email or call us on 0161 905 1801 in Manchester, or 01925 830 830 in Warrington. We're here to help.