New Bounce Back Loans scheme for small businesses
The Bounce Back Loan scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days. The loans will be 100% government backed and will be made available to small businesses from 4th May. Businesses will be able to borrow between £2,000 and £50,000 and the loans will be interest free for the first 12months, there will be no repayments due during the first 12 months. The loans will be easy to apply for through a short, standardised online application. The Bounce BackLoan Scheme is in addition to the £6 billion awarded in business grants, the job retention scheme and tax deferrals.
The government announcement can be read here.
The Coronavirus Large Business Interruption Loan Scheme (CLBILS) is now open for applications.
The scheme helps all viable large businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak. The scheme is available through a series of accredited lenders, which are listed on the British Business Bank website.
To be eligible businesses must:
- be based in the UK
- have an annual turnover of over £45 million
- Be able to self-certify that your business has been adversely impacted by coronavirus
your business has not received a facility under the Bank of England’s COVID-19 Corporate Financing Facility
You must also have a borrowing proposal which the lender would consider viable, if not for the coronavirus pandemic believes will enable you to trade out of any short-term to medium-term difficulty
Financial Conduct Authority (FCA) guidance on COVID-19 insurance claims.
The Financial Ombudsman Service (FOS) is an independent body that provides arbitration for insurance claims of smaller businesses (with turnover of less than £6.5 million and fewer than 50 employees). The decision of the FOS is binding on insurers up to £350,000.