The Microbusiness Bounce Back loan is the latest Business Support measure and was announced by the Chancellor this Monday 27th April. A microbusiness is defined as a business with fewer than ten people and the scheme offers the following support:
• A 12 month interest free loan of between £2,000 and £50,000
• Online application form with borrowers self-certifying the viability of their business
• Loan terms of up to six years
• Firms trading as of March 1 can apply
• No submission of business plans or forward financials required
• Businesses to receive the loan with 24 hours
The loan is capped at 25% of turnover which should ensure that the majority of UK microbusinesses can access the support scheme. However, those that were ‘undertaking in difficulty’ as of 31 December 2019 and those that have accessed the Coronavirus Business Interruption Loan (CBIL) cannot apply. However, CBILs less that £50,000 can be ported across to this scheme if desired.
The Microbusiness Bounce Back Loan was initially very well received, with an implementation date of this coming Monday 4th May. However, since the announcement, various regulatory and technical issues have been raised by senior bankers and threaten to delay the launch.
We’ll continue to update our social media channels and website when we have more information but in the meantime, if you need financial help or advice during this time, get in touch to see how we can help on 01274 588115 or firstname.lastname@example.org.