New Government Loan For Small Business - Self Published Writer Eligible?

Truegho

In the light of the Chancellor's announcement yesterday that a new loan for small businesses will be introduced next Monday, I was just wondering if I would be eligible.

My circumstances are that I am a self-published author on Amazon, but as yet my annual income has not exceeded £1000. I do get weekly Working Tax Credit, as I work 30 hrs pwk. I did not have to complete a self-assessment tax return for the last few years, due to my income not going over £1000 per year.

So could I apply for this loan?

whizzywoo

Here is the Gov info on the latest small business loans.
https://www.gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans

You do know it's loan and will have to be paid back don't you?  It's not one of the grants which presumably you don't qualify for because you have not filed tax returns and you don't have premises.

I would expect though that the loan is only for businesses which have been affected by the Covid19 virus.  Has your self-publishing business on Amazon been affected because it seems unlikely to me?

Potbellypig

It's all on here... https://www.gov.uk/government/news/small-businesses-boosted-by-bounce-back-loans

But I'm assume this bit rules you out... The scheme has been designed to ensure that small firms who need vital cash injections to keep operating can get finance in a matter of days

Jeremy535897

The loans available will be from £2,000 to £50,000. Reporting suggests the loan will be capped at 25% of turnover (presumably as it has to meet the turnover condition in the existing CBILs), so £250 in your case, which falls below the bottom figure, but we will have to await the details.

Truegho

Yes, I do know it's a loan. And my self-publishing business HAS been affected to a degree by Covid-19, because I am now only selling just a handful of paperbacks. My Kindle book sales, however, have increased somewhat.

sharpe106

Truegho said:

In the light of the Chancellor's announcement yesterday that a new loan for small businesses will be introduced next Monday, I was just wondering if I would be eligible.

My circumstances are that I am a self-published author on Amazon, but as yet my annual income has not exceeded £1000. I do get weekly Working Tax Credit, as I work 30 hrs pwk. I did not have to complete a self-assessment tax return for the last few years, due to my income not going over £1000 per year.

So could I apply for this loan?

If you are earning less than a £1000 a year from self-publishing how much have you really lost out on in the 2 months? If you actually needed the money how would you pay It back? As on that amount would take a while to earn it again.

Truegho

I wanted to apply for the government's Bounce Back Loan today, but after having read the replies to my question of eligibility, I fear I would be wasting my time.

Jeremy535897

I think you will still be struggling to meet the turnover test. It's the same for bounce back loans as it was for CBILs.

Jeremy535897

On reflection, it says a minimum of £2,000 up to 25% of turnover, maximum £50,000. You can read some FAQs here:
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/