Mirandus Accountants is an expert accounting and chartered tax advisory practice based in London and Edinburgh. We specialise in meeting the needs of private clients and their businesses.
COVID-19
Coronavirus Bounce Back Loan
Who is eligible:
Small and medium sized businesses
based in the UK
Negatively affected by coronavirus
Was not an ‘undertaking in difficulty’ on 31 December 2019.
An ‘undertaking in difficulty’ is an EU state aid rule which came into force in 2014, which guides EU governments on how to help businesses in financial difficulty.
To check if you are pass this eligibility criteria, please check the definition below:
Unless you are a business that is:
Under 3 years old
or made your first commercial sale within 7 years
As at 31 December 2019, the business must have losses greater than half of its subscriber share capital. To check this, you must refer to your balance sheet for your accounts as at 31 December 2019 and if you are declaring losses or less than half your share capital, you will not be eligible.
Who is not eligible:
Those who have already received funding via the Business Interruption Loan Scheme
Banks, insurers and re insurers (but not insurance brokers)
Public-sector bodies
Further-education establishments, if they are grant-funded
State-funded primary and secondary schools
Criteria:
The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000.
The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.
Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.
The scheme will be delivered through a network of accredited lenders, still to be confirmed, but excepted to be approved via the British Business Bank.
Update as at September 2020
Those businesses that took out a bounce back loan will have the option to opt for the ‘Pay as you Grow’ Scheme, which extends the loan term from six to ten years. By doing so, you would almost halve the monthly repayments. The repayment start date for these loans begin from May 2021 onwards.
There is also the option to pay interest only payments if you are struggling with cash flow and in some serious cases, a suspension of monthly payments of up to 6 months can be offered by banks to help businesses.
Your businesses’ credit rating will not be affected by these changes if you opt to use them.
How do I apply?
Applications will be completed via an online portal and simple form completion and if approved, funding is made within 24 hours.
New application deadlines have been extended to the end of 2020.
Please have a look at the following pages to find exactly what you are looking for: