Details relating to the Coronavirus Business Bounce Back Loans remained scarce right up until launch at 9am this morning. A few hours into the process here’s what we now know.
This is an online, 7 question application process done through a business’ online banking portal.
The loans are between £2,000 and £50,000, the interest rate is 2.5% and the loans will be interest-free for the first 12 months.
The key question of “business in difficulty” has now been clarified. Individuals or companies subject to insolvency proceedings are automatically precluded from applying. There is also a capital adequacy test for both limited companies and partnerships. Ambiguously there is a reference to a “restructuring plan” precisely what this means is unsure but my working assumption at present is that this is reference to a voluntary arrangement. If this is still unclear there is a questionnaire annexed to the application process to assist with answering this question.
The government is providing a 100% guarantee for these loans as opposed to the 80% available under the CBIL.
