Morgan Hemp & Co - Tax Tips & News

GUIDANCE FOR OUR CLIENTS - CORONAVIRUS (COVID-19)
UPDATE 5 - 4th May 2020

On Monday the 4th May 2020 a new 100% government backed loan, called the Bounce Back Loan has been launched to help small and medium-sized businesses. The loans are available directly from banks and other lenders (a list of accredited lenders will be released by HMRC). As the loan is 100% backed by the government, this should result in loans reaching businesses within days, providing immediate support to those that need it as easily as possible.

To apply the business needs to meet the eligibility criteria below:

• Is based in the UK
• Has been negatively affected by coronavirus
• Was not an 'undertaking in difficulty' on 31 December 2019
• Not currently applying for a Coronavirus Business Interruption Loan (CBILS). (N.B. - However if you have already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020)

Bounce Back Loan details:

• Businesses will be able to apply online through a short and simple form
• Loans of £2,000 to £50,000 (capped at 25% of turnover)
• No fees, interest or repayments for the first 12 months
• Interest rate will be capped at 2.5% from year 2 onwards
• Loan terms will be up to 6 years

We will continue to communicate updates as and when they become available to us

Please do not hesitate to contact us if you wish to discuss the above or how COVID-19 is affecting your business generally.

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Disclaimer
The information contained in this newsletter is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.