Bounce Back Loan and Ltd. Company

londoner1998

Hello. 
After a couple of failed attempts I have just got my BBL application with the Co-Op bank accepted. I'm thrilled! 
now I have a question: I am a self-employed person who due to Covid haven't been able to work pretty much at all since March (hence the loan). During this lockdown time I have set up a second income stream and I want the income for this to be run through a ltd company that I set up in January but has been dormant until now. Since I had no funds I haven't been able to do anything with it either than set up the website etc and work on designing my service offer. My question is, can i use some of the money from the BBL to fund marketing and some business expenses etc for my Ltd company? This would help me massively to get things moving not only now but for the near future as my self-employed income will take time to pick up (for as long as gyms and yoga studios are closed and with limited numbers). 

Many thanks, 

Londoner

Grumpy_chap

As I understand the BBLS rules, you would not be allowed to do as you suggest.

I understand that you can pay yourself from the sole trader business using BBLS funds.  Having done so, you can then lend the money to the new ltd company.  It will be a Director's loan to the Ltd Co.

Not sure how you record that, as sole trader you are the business.

Jeremy535897

The BBL for your self employment can be used for that business and to fund your own living expenses. As Grumpy says, it's not really designed to be used for a different business, but if using it for living expenses enables you to spend other funds on the limited company, that is not an issue.

The withdrawal of money from the self employment to fund living expenses is drawings, and the loan by you to your company is a director's loan account.

londoner1998

Thank you both, that's what I had in mind.