Coronavirus Bounce Back Loan 2020 - EuroWin Solutions

Coronavirus Bounce Back Loan 2020

Bounce Back loan

A government-backed loan scheme to help Britain’s small businesses survive the coronavirus lockdown comes into effect on Monday, allowing firms such as hairdressing salons, coffee shops and florists to receive emergency cash. The new Bounce Back Loans allow businesses including sole traders to borrow between £2,000 and £50,000 for up to six years. The first year is interest-free for firms, after which they pay an interest rate of 2.5%. The maximum loan available is £50,000.

The Bounce Back Loan Scheme (BBLS) helps smaller companies to get quicker access to funding during the coronavirus outbreak. Bounce back loans are 100% backed by the Treasury in the hope this will speed up lending to those businesses impacted by the coronavirus pandemic. Here’s what we know so far, and we’ll update you as soon as we hear more on this subject from official sources.

Who can apply?

  • Small companies, sole traders and partnerships can apply
  • You need to be based in the UK
  • You are negatively affected by COVID19
  • You were not classed as an undertaking in difficulty* on 31 December 2019
  • You can borrow up to 25% of 2019 revenue or £50,000, whichever is higher
  • You’ll have to self-certify that your business is eligible as part of the application.

How to apply

The scheme comprises 11 lenders including many of the big retail banks. You will use the website of the lender to contact a suitable lender. The lender will ask you to fill out a brief online application form and announce that you are eligible for the loan. The lender will decide whether to offer you a loan or another type of finance and you will be responsible for repaying 100% of the amount borrowed.

• You can apply from 9am Monday 4 May 2020
• There will be a network of accredited lenders
• It’s likely that you can apply through your usual online banking site
• Short 2 page self-certification online application form, making it easy to apply
• Cash should be available within 48 hours of your application

Which banks offer Bounce-back Loans?

The scheme currently has the following lenders, with the British Business Bank stating they are accepting applications from new lenders to be come accredited to the scheme.
• Clydesdale Yorkshire Bank Group
• Danske Bank
• Lloyds Bank
• NatWest
• Santander
• Royal Bank of Scotland
• Ulster Bank

What are the eligibility requirements for a Bounce-back Loan?

Eligible business must be based in the UK and established by 1 March 2020. They will need to generate at least 50% of their income from trading activity and show that this has been disrupted due to Coronavirus.
Businesses cannot have been in difficulty on 31 December 2019 and cannot be in bankruptcy or liquidation at the time of applying for a Bounce back loan.

Some business sectors are excluded from Bounce back loans, these include banks, insurers, reinsurers, public-sector bodies, further education establishments in they receive grant funding, state-funded primary and secondary schools.

You cannot apply if you’re already claiming under:

• Coronavirus Business Interruption Loan Scheme (CBILS)
• Coronavirus Large Business Interruption Loan Scheme (CLBILS)
• COVID-19 Corporate Financing Facility

If you’ve already received a loan of up to £50,000 under one of these schemes you can transfer it into the Bounce Back Loan scheme. You have time until the 4th of November 2020 to arrange this with your lender.

About EuroWin Solutions

EuroWin Solutions is a well-established, modern accounting firm based in the city of London. We offer Professional Accounting Services, Tax Advice and Expert Immigration Services. The firm has been established for 9 years with a team of qualified accountants, immigration advisers and tax specialists who have various industrial experience. We work with a large number of businesses, sole traders and Individuals helping them achieve their goals through our pro-active and informative service.

For us every client is important, which is proven by our high customer satisfaction. We guarantee to deliver a high-quality service from a team of dedicated personnel who are professionally competent. Our fees are calculated on a fixed fee basis, so you know up front how much it will be, for the services you require. We work closely with our clients to ensure they receive expert guidance through the complex world of accounting and immigration.
Working with us means you will always be treated with respect and transparency. Our commitment to you is total and we want you to always be 100% satisfied by the quality and efficiency of our service.

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