Bounceback Loan - is it worth doing

Missmuffett28

We are a small business with an estimated turnover of £250,000 and I wondered as we have been closed since lockdown in the middle of March, we can apply for this as although we have a large overdraft facility, would it be more cost effective to take out this loan that is being offered instead of the overdraft with Lloyds.  We have bills to pay but are nearly back in overdraft.  

Grumpy_chap

The bounceback loan is interest free for 12-months then at 2.5% for the remainder of 6 years.  Is that cheaper than using the overdraft facility?  Also, I assume the bounceback loan does not reduce the remaining overdraft facility, so the total funding available to your business has increased, but still need repaying in the future.

On the Barclays website, it says "You can apply to borrow up to 25% of your turnover in the 2019 calendar year, up to a maximum of £50,000."  Does the £50k cap at 25% or turnover mean it is only available for business with turnover up to £200k?  OR is it a maximum of 25% or £50k whichever is lower?

Heathersam

Hello,
I wanted to apply for the new bounce back loan but don’t have a business account with a bank .Can I still apply ?My turnover is about £30 k pa. I’ve been on Lloyd’s but can’t get beyond keying in my personal account number which is not accepted .
I am a freelance dance teacher who goes into schools so have lost all my income .The only extra I can  claim at the moment is a bit extra on my working families tax credit .i don’t have a fixed building so can’t get a grant .

Please can you help - I’m a single parent and my elderly mother lives with us too.

Just need some financial help.

Thankyou 
Heather 

ELLYP

Lloyds are currently only offering bounce back loans to their business customers but it does say in their website that they are looking into a way of offering it to their regular customers and will update by the end of the week.

Jeremy535897

I think the way the test works is as follows:
Turnover up to £8,000, maximum loan £2,000
Turnover over £8,000 up to £200,000, maximum loan 25% turnover
Turnover over £200,000, maximum loan £50,000
See https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/

Banks are allowed to lend to customers who only have a personal bank account, but as they can charge fees on a business bank account I suspect they will want customers to open one.

Grumpy_chap

I just checked and Bounce Back Loan is "Available to most UK-based businesses, regardless of turnover."
That is from the FAQ in the link that @Jeremy535897 provided.