Helping businesses to bounce back

The Bounce Back Loan Scheme (BBLS) enables smaller businesses to access finance more quickly during the coronavirus outbreak.

It was launched on May 4 and is designed to help small and medium businesses borrow between £2,000 and up to 25% of their turnover, up to a maximum of £50,000.

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.

The length of the loan is six years but they can be repaid early, without incurring a redemption fee and no repayments will be due during the first 12 months.

Businesses can apply if they are based in the UK, were established before March 1, 2020 and have been negatively effected by the coronavirus. However, the scheme is not available to public sector bodies, banks and insurers.

There are 11 lenders participating in the scheme, including many of the main retail banks. Lenders’ websites are the best place to find application forms.

Businesses that have already applied for a coronavirus business interruption loan of £50,000 or less can apply to have these switched over to the bounce back scheme.

Update to the Furlough Scheme

On May 12, the Chancellor announced that the scheme, which pays the wages of workers on leave because of coronavirus, has been extended until October, with employees on the scheme continuing to receive 80% of their monthly wages, up to £2,500. However, from August, companies will be asked to share the cost of the scheme.

August sees another change as employers will be able to bring furloughed employees back on a part time basis.

Self Employment Income Support Scheme

The self employed are now able to go online and check their eligibility for this taxable grant. To check your eligibility. you will need your UTR (unique tax payer reference) and national insurance number.

Once the check is complete, you will be given a date and time when you can submit your claim.

You should also ensure you have set up a personal tax account with HMRC and that your contact details are correct.

The claim window opened on Wednesday, May 13, which is ahead of schedule, with the money being paid over by Monday, May 25 or six working days from the claim.