Bounce Back Loan

Jeremy535897

See https://www.gov.uk/government/news/new-bounce-back-loans-to-launch-today

Also https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/

_thebc

I bank with Handelsbanken who are not currently one of the approved lenders for BBLS. I tried applying through all of the approved lenders, but can't get anywhere unless you're an existing customer. I'm hoping some more niche lenders get added over the next few days who don't have the same requirement but would be grateful for anyone's insight.

Rangytangy

Do these bounce back loans have to be declared as income for universal credit purposes.

recruiteronline

We are given hope on these schemes only to find out they aren't always as straight forward as they look. We bank with Tide, we have not been eligible for a grant as we don't fit the criteria, due to our RTI submission being sent late through no fault of our own our staff cannot be furloughed either, even though they all worked throughout Feb and March, but due to having to wait for our PAYE activation code, we are now told they cannot be added to the Job Retention scheme, even though our RTI was sent the day we received the code and they were informed since 1st of Feb our staff were working and we couldn't sent RTI as we were waiting for our code since January and had to request 4 times for it to arrive. After looking on line, we are struggling to find how we can possibly access the Bounce Back Loan scheme, its our only lifeline to keep trading. So far we cant find information on what we can do. Someone earlier mentioned going through a broker as high street banks require us to have our business account with them to be able to apply. Any information of brokers or other places those of us that bank with Tide or similar accounts would be greatly appreciated.

Jeremy535897

recruiteronline said:

We are given hope on these schemes only to find out they aren't always as straight forward as they look. We bank with Tide, we have not been eligible for a grant as we don't fit the criteria, due to our RTI submission being sent late through no fault of our own our staff cannot be furloughed either, even though they all worked throughout Feb and March, but due to having to wait for our PAYE activation code, we are now told they cannot be added to the Job Retention scheme, even though our RTI was sent the day we received the code and they were informed since 1st of Feb our staff were working and we couldn't sent RTI as we were waiting for our code since January and had to request 4 times for it to arrive. After looking on line, we are struggling to find how we can possibly access the Bounce Back Loan scheme, its our only lifeline to keep trading. So far we cant find information on what we can do. Someone earlier mentioned going through a broker as high street banks require us to have our business account with them to be able to apply. Any information of brokers or other places those of us that bank with Tide or similar accounts would be greatly appreciated.

You can look at: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/

DonutMonster

I had problems getting a business account with high street banks because I was getting paid through BVI and they wanted so much documentation it just made it quick and simple to take the Revolut and Transferwise route.

I have personal banking through Barclays and Metro and an old account with NatWest.

As already mentioned, the high st banks need to you be business customers with them to apply, although I think it was NatWest that said you don't need a full business account, just a loan facilitating account. So I've 'reactivated' my personal current account with them and am waiting for the online log in details to apply. 

Barclays publish:

I only have a personal account but own a business- can I apply?

Yes, but you’ll need to update your account details first. To do this, log into Online Banking, start a web chat and we’ll help you make the necessary changes.

So I'm now on live web chat and have been waiting for 57 mins with 3 mins left to go. Unless my wifi signal disappears I will report back with any further info. 

Fingers crossed.

Hermann

Hopefully lenders will get to grips with the details soon but there is clearly no need for a business account to be eligible....

From...  https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/

Is the loan available under the Bounce Back Loan Scheme a personal loan or a business loan?

A loan under the Scheme is a business loan. The terms of the loan are covered by the Scheme.

A lender may consider paying the funds into a personal current account if no business bank account is held, if the business has been satisfactorily evidenced.

DonutMonster

Well that was excrutiating.

After waiting for an hour to speak to live chat they said I needed to go through the Make a Complain section but not make a complaint. I started another 'complaint' web chat and thankfully didn't have to wait this time but the operator basically said they have launched it today but not accepting applications yet and to fill in the form tomorrow.

I guess in the rush to launch this not everybody is going to be prepared for the processes required.

So tomorrow it is.

Grumpy_chap

Rangytangy said:

Do these bounce back loans have to be declared as income for universal credit purposes.

I can't answer definitively by reference to a rule or anything, but I can't imagine that the loan is counted as income.  It is a loan and you need to pay it back in the future.  If you took a car loan, that would not be classed as income but as borrowing.  I cannot see why bounce back loan would be classed as anything other than borrowing.

Hermann

Rangytangy said:

Do these bounce back loans have to be declared as income for universal credit purposes.

Hopefully not, but suspect it's best to enter some details on your journal that you've received the loan and it is a business asset.

One of the conditions of applying and being eligible for the Bounce Back Loan is that it is only for benefit of the business and strictly is not for personal use so it would seem perverse for UC to then count it as a personal asset but then again you never know for sure until the system has decided....

From....  http://https//www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/

 Am I eligible?

The Scheme is open to most businesses, regardless of turnover, who meet the eligibility criteria and who were established on or before 1 March 2020[1]. Borrowers are required to declare, amongst other things, that:

• The business is engaged in trading or commercial activity in the UK at the date of the application, was carrying on business on 1 March 2020 and has been adversely affected by coronavirus (COVID-19).
• The business (and any wider group of which it is part) has not already received a Bounce Back Loan Scheme facility.
• The business (and any wider group of which it is part) has not yet obtained a loan through either the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, or the Covid Corporate Financing Facility, unless that loan will be refinanced in full by the Bounce Back Loan Scheme facility.
• That the business is a UK limited company or partnership, or tax resident in the UK
• The business is not a bank, building society, insurance company, public sector organisation, state-funded primary or secondary school, or an individual other than a sole trader or a partner acting on behalf of a partnership.
• Whether or not the business was, on 31 December 2019, a “business in difficulty” and does not breach State aid restrictions under the Temporary Framework; and if it was a “business in difficulty” then it must confirm it does not breach de minimis State aid restrictions and will not be used to support export-related activities.
• At the time of submitting their loan application, the business is neither in bankruptcy, debt restructuring proceedings, liquidation or similar.
• More than 50% of the income of the business (together with that of any member of any group of which it is a part) is derived from its trading activity. This confirmation is not required if the borrower is a charity or a further education college.
• They will use the loan only to provide economic benefit to the business, and not for personal purposes. They have understood the costs associated with repayment of the loan and that they are able and intend to complete timely repayments in future.