Originally written by Timothy Adler on Small Business
Which banks offer Bounce Back Loans?
Twenty-nine lenders including all the high-street banks offer Bounce Back Loans.
Adams & Company Bounce Back Loan
AIB Bounce Back Loan
Arbuthnot Latham Bounce Back Loan
Bank of Ireland UK Bounce Back Loan
Bank of Scotland Bounce Back Loan
Barclays Bounce Back Loan
Capitalontap Bounce Back Loan
Close Brothers Bounce Back Loan
Clydesdale Bank Bounce Back Loan
Conister Bounce Back Loan
Coutts Bounce Back Loan
Danske Bank Bounce Back Loan
Funding Circle Bounce Back Loan
GCBF Bounce Back Loan
HSBC UK Bounce Back Loan
Investec Bounce Back Loan
Lloyds Bank Bounce Back Loan
Metro Bank Bounce Back Loan
NatWest Bounce Back Loan
Paragon Bounce Back Loan
Santander Bounce Back Loan
Skipton Business Finance
Starling Bank Bounce Back Loan
The Co-operative Bank Bounce Back Loan
RBS Bounce Back Loan
Tide Bounce Back Loan
TSB Bounce Back Loan
Ulster Bank Bounce Back Loan
Yorkshire Bank Bounce Back Loan
Can I open a Bounce Back Loan without a business account?
Most banks say that existing personal customers will need to a separate business account to service their Bounce Back Loan.
Danske Bank, RBS/NatWest, Starling, TSB, Ulster Bank state you must open a business account, even if you’re an existing customer.
And Bank of Scotland, Clydesdale and Yorkshire Bank say you “may” need to open what they term a “feeder” account for your Bounce Back
Tag Archive for Bounce Back Loans
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What happens if I can’t repay my Bounce Back Loan?
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Can I apply for a second Bounce Back Loan?
Yes, you can “top-up” your existing Bounce Back Loan if you originally borrowed less than the maximum amount available to you.
However, as of November 10 2020, you cannot apply for a second, separate Bounce Back Loan either from your existing lender or another lender.
How many Bounce Back Loans can I have?
A top-up is only available from your existing BBLS lender. A borrower can apply for a top-up that is for the lesser of £50,000 or 25 per cent of the annual turnover you certified in your original successful Bounce Back Loan Scheme application form, minus the value of your original loan.
Bounce Back Loan top ups
Under the Bounce Back Loan Scheme top up, if a borrower certified an annual turnover of £100,000 in their original application and took out a Bounce Back Loan of £20,000 (20 per cent of that certified annual turnover), they can ask to borrow an additional £5,000 (5 per cent of that certified annual turnover), taking their Bounce Back Loan to the maximum 25 per cent of their originally certified annual turnover.
Varying turnover amounts certified in original loan applications and the differing
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Bounce Back Loan repayment calculator – how much will your loan cost?
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Bounce Back Loan calculator
Use the SmallBusiness.co.uk Bounce Back Loan calculator to work out how much your loan will cost in total.
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Bounce Back Loan Calculator
Work out the monthly repayments on the sum you’d like to borrow.
Turnover 2020
Maximum sum allowed to borrow
Sum to borrow (between £2,000 and £50,000)
Number of years to repay (between 1 to 5)
Estimated monthly repayments
$(“#turnover”).on(“keyup”, function(){
if($(this).val().length > 1){
var turnover = $(this).val().split(“£”)[1];
} else {
var turnover = $(this).val();
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$(this).val(“£”+turnover);
var maxSum = turnover / 4;
maxSum = “£” + maxSum;
$(“#maxSum”).val(maxSum);
});
$(“#sumToBorrow”).on(“keyup”, function(){
if($(this).val().length > 0){
if($(this).val().split(“£”)[0] == “”){
var sum = $(this).val().split(“£”)[1];
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sum = “£” + sum;
$(this).val(sum);
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$(“#repayYears”).on(“keyup”,function(){
var noOfYears = $(this).val();
var noOfMonths = noOfYears * 12;
if(noOfYears != 1) {
var noOfYearsInterest = noOfYears – 1;
var noOfMonthsInterest = noOfYearsInterest * 12;
var interest = Math.pow(1 + 0.25/noOfMonthsInterest,noOfMonthsInterest) – 1;
var amount = $(“#sumToBorrow”).val().split(“£”)[1];
var interestOwed = parseFloat(parseInt(amount)
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Government Bounce Back Loan for your small business
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
What is the latest Bounce Back Loan news?
The Government launched the Bounce Back Loan Scheme (BBLS) on May 4 2020 to help small and microbusinesses get through the coronavirus pandemic.
Your small business can borrow a sum equivalent to up to 25 per cent of turnover, capped at £50,000 per business.
The Government will cover the first year of interest payments, meaning you have to repay the rest of the loan yourself. Interest is fixed at 2.5 per cent per annum.
Because the Government Bounce Back Loan is unsecured debt, this means the 29 accredited lenders including the high-street banks cannot ask you for personal guarantees. This means the lender cannot come after your house or personal vehicle if you default.
However, the Government Bounce Back Loan must be repaid and is not a grant.
When does the Bounce Back Loan end?
The Government Bounce Back Loan Scheme (BBLS) is due to expire on March 31.
Am I eligible for a Bounce Back Loan?
Most businesses with some exceptions can apply for a Bounce Back Loan provided they were properly trading before March 1 2020.
You must not have taken out any other form of Government Covid-19 financial support, such as a
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Microbusiness £50,000 Bounce Back Loans – how they work
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
UPDATED: The chancellor is extending the repayment period on Bounce Back Loans for 1.4m small businesses.
Small firms will have ten years to repay instead of the previous six years, as announced by Sunak in September 2020. Interest on extended loans will be at a fixed rate of 2.5 per cent.
Businesses can also choose to make interest-only payments for six months (this option is available up to three times on the length of the loan) or pause repayments for up to six months (this option is only available once).
Lenders will start communicating these options to customers three months before repayments begin and advise them on how each option may affect their payment profile. They contact customers directly so there’s no need to get in touch with them.
The Bank of England’s regulation chief is warning that half of Bounce Back Loans will go sour.
What’s more, figures from the Office of National Statistics show that 14 per cent of businesses think they have little or no chance of surviving the next three months.
Last year, the government extended the application for Bounce Back Loans until the end of March 2021. Previously, the loan deadline was extended to January
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Bounce Back Loan Scheme extended until the end of March
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Rishi Sunak has extended the UK’s £68bn coronavirus emergency financial support including the Bounce Back Loan Scheme until the end of March.
The Bounce Back Loan Scheme, the Coronavirus Business Interruption Loan Scheme and the Coronavirus Large Business Interruption Loan Scheme had all been due to close at the end of January.
With swathes of southern England joining the north in Tier 3 lockdown, effectively shutting down pubs and restaurants, the Treasury needed to support small businesses which face months with much-reduced or no revenues.
The Treasury said: “We are extending the schemes now, ahead of Christmas and further into the new year, to ensure that businesses can continue to access the support they need to grow and recover.”
The loan schemes provide guarantees for banks to lend quickly and cheaply to struggling businesses during the pandemic. The Bounce Back Loan Scheme (BBLS) carries a full guarantee from the government for up to £50,000, while the others have a guarantee which covers the banks for about 80 per cent of the value of the loan.
However, the government itself has admitted that 60 per cent of Bounce Back Loans will never be repaid, leaving the taxpayer facing a
Hot Business News Today
Bounce Back Loan Scheme extended until the end of March
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Rishi Sunak has extended the UK’s £68bn coronavirus emergency financial support including the Bounce Back Loan Scheme until the end of March.
The Bounce Back Loan Scheme, the Coronavirus Business Interruption Loan Scheme and the Coronavirus Large Business Interruption Loan Scheme had all been due to close at the end of January.
With swathes of southern England joining the north in Tier 3 lockdown, effectively shutting down pubs and restaurants, the Treasury needed to support small businesses which face months with much-reduced or no revenues.
The Treasury said: “We are extending the schemes now, ahead of Christmas and further into the new year, to ensure that businesses can continue to access the support they need to grow and recover.”
The loan schemes provide guarantees for banks to lend quickly and cheaply to struggling businesses during the pandemic. The Bounce Back Loan Scheme (BBLS) carries a full guarantee from the government for up to £50,000, while the others have a guarantee which covers the banks for about 80 per cent of the value of the loan.
However, the government itself has admitted that 60 per cent of Bounce Back Loans will never be repaid, leaving the taxpayer facing a
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Writing off Bounce Back Loans would be best thing to do, say accountants
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Writing off the £42bn worth of Bounce Back Loans that have been issued to small businesses is going more effective in the long-run than chasing debts which will never be repaid.
So says accountancy association the AAT, responding to the withering assessment of MPs investigating the Bounce Back Loan Scheme (BBLS).
Nearly two thirds of Bounce Back Loans, designed to help small businesses survive Covid-19, may never be repaid, according to the government’s own figures. That would leave the taxpayer staring at a loss of £26bn.
>See also: Europe’s small businesses call for three-month post-Brexit transition period
Writing off the entire £42bn worth of Bounce Back Loans would save the government £1bn in interest payments alone paid to banks while they chase bad debtors, and free up banks not to waste time working with costly debt recovery agencies.
Back in June, ex-chancellor George Osborne said that all emergency Covid-19 financial support should be written off – an assessment the AAT agrees with.
Taxpayers are facing a hit of up to £26bn because the government failed to “strike the right balance” between rescuing companies and protecting the public purse with an emergency loan scheme, MPs have warned.
>See also: Government plans
Hot Business News Today
Writing off Bounce Back Loans would be best thing to do, say accountants
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
Writing off the £42bn worth of Bounce Back Loans that have been issued to small businesses is going more effective in the long-run than chasing debts which will never be repaid.
So says accountancy association the AAT, responding to the withering assessment of MPs investigating the Bounce Back Loan Scheme (BBLS).
Nearly two thirds of Bounce Back Loans, designed to help small businesses survive Covid-19, may never be repaid, according to the government’s own figures. That would leave the taxpayer staring at a loss of £26bn.
>See also: Europe’s small businesses call for three-month post-Brexit transition period
Writing off the entire £42bn worth of Bounce Back Loans would save the government £1bn in interest payments alone paid to banks while they chase bad debtors, and free up banks not to waste time working with costly debt recovery agencies.
Back in June, ex-chancellor George Osborne said that all emergency Covid-19 financial support should be written off – an assessment the AAT agrees with.
Taxpayers are facing a hit of up to £26bn because the government failed to “strike the right balance” between rescuing companies and protecting the public purse with an emergency loan scheme, MPs have warned.
>See also: Government plans
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Government plans permanent state-backed small business loan scheme
by Timothy Adler • • 0 Comments
Originally written by Timothy Adler on Small Business
The government is planning to replace existing coronavirus business support with a permanent state-backed small business loan scheme.
Under the plan, which would be launched in January, the government would guarantee 80 per cent of loans to small businesses, ranging from a few thousand pounds up to £10m per company over a six-year lending period.
In effect, the new state-backed SME loan scheme would extend the Coronavirus Business Interruption Loan Scheme (CBILS) but with a lower threshold. The minimum CBILS loan is £10,000.
>See also: Treasury eyes hitting self-employed gig workers with VAT charge
According to the Financial Times, the banks would set their own interest rate for their loans, but the rate is likely to be capped at about 15 per cent – just like the CBILS – which is far higher than the 2.5 per cent fixed interest rate of the parallel Bounce Back Loans Scheme (BBLS).
Research by our sister title GrowthBusiness found that lenders are charging anything between 3 per cent and 15 per cent for CBILS loans.
As of last month, the CBILS and the BBLS have lent £60.64bn to struggling businesses between them.
And the new state-backed SME lending scheme would have more stringent