- is based in the UK
- has been negatively affected by coronavirus
- was not an ?undertaking in difficulty? on 31 December 2019
?Responding to pressure from small business,?chancellor Rishi?Sunak has, at last, announced?guaranteed access to loans of up to ?50,000 within 24 hours of?SMEs applying. These will be available from next Monday 4 May” comments Brian Palmer, tax policy expert?and former?AAT (Association of Accounting Technicians) President.?
?The loans underline the crisis many small firms are currently facing and therefore the Chancellor has guaranteed generous repayment terms. Loan terms are for up to 6 years,?no repayments will be due during the first 12 months and there won?t be any fees or interest to pay for the first?year.?
However,?SMEs need note that you can only apply for a loan if your business was not an ?undertaking in difficulty? as of 31 December 2019. Equally, you?re excluded from qualifying?if you?re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).?
That said,?if you?ve already received a loan of up to ?50,000 under CBILS and would like to transfer it into the?Bounce?Back?Loan scheme, you can arrange this with your lender?between now and?4 November 2020.?
The launch of the?Bounce?Back?Loan, supported by?government guarantees,?a low rate of interest, no arrangement fees and a 24-hour turnaround?is?just the sort of thing that small businesses?have been crying out for.??
The loan amounts aren?t?huge but?are significant enough?to be of immediate help. However,?there?will be some fears that?when lockdown is eased, the?bounce?back?may not be robust?enough to enable?small businesses?to meet the repayments.?
**For more information please visit Gov.co.uk**
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