Updated Information on how small businesses and the self-employed can weather Covid 19 – May 2nd, 2020

Yesterday, the Chancellor sent a letter to the lenders who have been accredited to provide the Bounce Back Loans.

Within in the letter, he thanked them for their efforts in regards to the CBILs and CLBILs and passed on his thanks to the frontline staff. He also outlined the legal responsibilities in regards to the new Bounce Back Loans, which should allow those asking for loans of £25,000 or less, to be able to access them much quicker.

The Chancellor also informed the accredited lenders that the loans are 100% backed by the government and that the interest rate should be set at 2.5%.

The Bounce Back Loans will allow businesses to borrow up to £50,000, capped at 25% of their turnover. As a result, the minimum facility size for the CBILs has been increased to £50,0001 to help prevent any confusion or risk of overlap. Any business that has already been granted a CBIL or overdraft up to £50,000 will be able to switch to a Bounce Back Loan over the next few months.

You can read the full letter by going to: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/882875/01052020_CX_Letter_to_banks_-_pricing_and_CCA_.pdf

As more information is released about this new loan I will update it on the blog.

The information and policies are continually being updated by the government, so I urge you to keep on top of the information by visiting the relevant website for your area.

UK:
https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses
Scotland: https://www.gov.scot/coronavirus-covid-19/
Wales: https://gov.wales/business-and-employers-coronavirus
Northern Ireland: https://www.nibusinessinfo.co.uk/

I will be trying to keep myself as informed as possible and will share relevant information on my fb business page: https://www.facebook.com/ihelmenterprises/