Business Loan Scheme extended

Treasury extends UK emergency business loan schemes – find out how this can benefit your business

More businesses will be able to access additional support as application deadlines for government-backed loan schemes and the Future Fund have been further extended until January 31, 2021.

UK firms will now have until the end of January to apply for emergency business loans, including Bounce Back Loans (BBLS), Coronavirus Business Interruption Loans (CBILS) and the CLBILS scheme for larger firms.

Chancellor Rishi Sunak announced on Twitter:

“The deadline for applications has been extended to the end of January, while firms can top-up existing Bounce Back Loans if they need additional finance”

Bounce Back Loan Scheme Adjustment

This announcement also includes an adjustment of the Bounce Back Loan Scheme rules to allow those businesses who have borrowed less than their maximum (i.e. less than 25% of their turnover) to top-up their existing loan.

Businesses will be able to take-up this option from next week and can make use of this once to ensure that they are able to benefit from the loan scheme as intended.

Business Loans – Overview and Key Dates

Business Interruption Loan Scheme

The CBILS gives businesses access to bank lending, overdrafts and other finance solutions to help them through the current crisis.

The maximum term for these loans was recently extended from six years to 10 years, meaning those businesses that need to free up cash flow can extend their loan terms to drastically reduce their monthly payments.

Previous closing date: November 30

New closing date: January, 31, 2021

Large Business Interruption Loan Scheme

CLBILS allows firms with a turnover of more than £45m to apply for up to £25m of finance, while firms with a turnover of more than £250m, including those that exceed £500m, can apply for up to £50m.

Previous closing date: November 30, 2020

New closing date: January 31, 2021

Bounce Back Loan

The Bounce Back Loan Scheme is designed to enable small and medium-sized businesses to access finance more quickly. Businesses can apply for a minimum of £2,000 up to a maximum of £50,000, or 25% of business turnover, and the Government will pay the interest for the first 12 months, with 100% backing.

The ‘Pay as You Grow’ scheme also means that companies will now be allowed to pay the loan back over ten years instead of six.

Previous closing date: November 30, 2020

New closing date: January 31, 2021

Future Fund

The Future Fund issues convertible loans between £125,000 and £5 million to innovative UK companies with good potential, that typically rely on equity investment and are currently affected by Covid-19.

Previous closing date: November 30, 2020

New closing date: January 31, 2021

Extension of CJRS Scheme, Self-Employment Scheme, loans, and Mortgage Holidays are all UK wide.

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If you are a self employed, business owner/director of company looking to get your accountancy and taxation matters sorted, look no further. We are pro-active and easily accessible accountants and tax advisors, who will not only ensure that all your filing obligations are up to date with Companies House and HMRC, but also you do not pay a penny more in taxes than you have to. We work on a fixed fee basis and provide same day response to all your phone and email enquiries. We will also allocate a designated accounts manager who would have better understanding of your and business financial and taxation affairs. Book a free consultation call using the link below.

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