Government introduces 'Bounce Back Loan' scheme

Today the government announced a new measure to help small businesses get through the Coronavirus crisis – It's called the ‘Bounce Back Loan’ scheme.

Government introduces 'Bounce Back Loan' scheme

Under the Bounce Back Loan scheme, small and medium-sized businesses will be able to borrow between £2,000 and £50,000. 

These loans will be 100% backed by the government, with absolutely no interest to pay or repayments to make for the first 12 months. 

Any loans offered will be for a maximum term of six years.

The Bounce Back Loan scheme has been introduced for those who haven't claimed the Coronavirus Business Interruption Loan Scheme (CIBILS). 

The CIBILS has come under criticism from UK businesses because banks have been applying their usual lending criteria, despite having 85% backed by the government.  

The Bounce Back Loans will be easier to claim for, the government claims. According to The Treasury, the funds will be available ‘within days’ too. 

To apply, simply contact an accredited lender. Every lender will have an online application form and you'll need to self-certify your eligibility for the scheme. 

Here’s what you need to know:

  • Any company can apply, although the scheme is aimed at the UK’s sole traders and small businesses with less than 10 employees.
  • Borrow between £2,000 and £50,000, up to a maximum of 25% of your turnover
  • No repayments for the first 12 months 
  • The interest rate will be a flat 2.5%
  • You won’t be eligible if you’ve applied for the CIBILS

VAT Domestic Reverse Charge Delayed until March 21

16 June 2020

A 12-month delay has been announced by the Government for the UK-wide rollout of the new VAT domestic reverse charge within the construction industry. The reverse charge had been set to come into force on October 1st, 2020.

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