Businesses all across the UK were dreading the Lockdown extension announcement, which was inevitable when you see the high death toll numbers in the UK, since it means more financial trouble for them. But they don’t have to worry anymore, because they also announced that there will be a new addition to the UK Government Relief Schemes that help small businesses, who had their livelihood affected by the Covid-19 pandemic, and that is the Bounce Back credit Plan.
The UK government is trying to facilitate the process by giving the certified moneylenders, like TIDE Bank, a 100% assurance for the credits that they will be given, considering that the plan can help you obtain from £2,000 up to £50,000 of your yearly turnover for as long as six years.
I know the first question you’re asking yourself is where should I apply to receive this loan? But that’s too simple and getting relief loans is anything but simple.
And that’s why we’re here to answer the questions that you should be asking instead:
Who’s qualified for this plan? Who’s not?
First, to be qualified for a Bounce Back credit plan your Business, that should already be established in the United Kingdom before the 1st of March 2020, has to have been put under financial strain by the pandemic, wasn’t facing any ‘financial difficulty‘ on 31 December 2019 and makeshalf, or more, of its revenue from trading.
You won’t be qualified for the loan if you’ll use the credit for anything other than venture capital or reinvesting it in your business. And since this scheme is for small businesses it’s only understandable that they won’t accept you if your business is Bank or an insuring company, a public primary or secondary school.
Or you’re already benefiting from the Covid-19 relief package for businesses and self-employed, but in case you have loaned up to £50,000 you can transfer it under this new Bounce Back credit plan you only need to arrange it with your money lender until a deadline of 4 November 2020.
How much interest will be on this loan? Are there any additional fees I’ll have to pay?
Moneylenders were already guaranteed a 100% reassurance for their credits by the UK government so they won’t be charging loanees any fees concerning the credit they’ll be taking. They also get the benefit of not paying any interest for the first year but after that period is done they will be required to pay a 2.5% a year.
That was not that difficult, right? But now we are in the part that you should’ve been asking last:
Where should I apply to receive this loan?
If after reading all of the above and you found that your business is eligible for the Bounce Back Plan then you should apply on the British Business Bank website.
For more information please visit: