KMA Accountancy – The Coronavirus Business Interruption Loan Scheme

“KMA Accountancy – The Coronavirus Business Interruption Loan Scheme  “

 

 

In this video Kim talks about The Coronavirus Business Interruption Loan Scheme, what it is, who is eligible and how to go about accessing it!

 

Hi, Kim here from KMA Accountancy. Quick video just to talk about the Coronavirus business interruption loan scheme that was released even by the government last Monday. So, you’ve heard a lot of talk about this where ultimately a small business owner can get a business loan from, backed by the British Bank of up to £5 million.

Now we’re hearing lots of stories, lots of horror stories if you like as well because obviously this was released on Monday. A lot of the banks, Monday 23rd, a lot of the banks weren’t ready. For example, Lloyd’s Bank, their online system crashed. So, whilst in theory it sounded like a fabulous idea and lots of people were seeing this as the saviour of their businesses. In essence, I think you do need to be mindful of the fact that you’ll need to look at other sources of cashflow as well.

So there is absolutely the scheme. As I say, if you Google the British Bank or drop me a note in the comments below and I can point you to my help sheet on this. Ultimately it is open for business, you can apply online.

The idea is that you apply to your own bank initially, there are 40 lenders that are all listed on the British Business Bank website, but in essence apply to your own lender first. The government are backing the scheme by guaranteeing up to 80%.

We believe that there is a 12-month interest holiday dependent on who is providing the loan, there may be up to a six-month capital holiday. Again, we believe there are no arrangements fees on this, but it is only for businesses that have a real chance of surviving the Coronavirus, it’s not just free money for anybody. If you apply, they’ll give you a loan. It really isn’t.

You have to make sure that you are a credible business. You will be asked potentially for three years accounts plus your management information and probably a credible cashflow forecast going forward. So, you will need to speak to your accountant to get some help on this probably.

You may be able to do it yourself, but as I say, you’d be far better kind of putting together a credible application in at once. Just doing it the one time. It will be potentially looked at in detail. We were hearing stories last week of the main four banks wanting personal guarantees.

I’ve since heard over the weekend that potentially the big four are actually loaning up to £250,000 without personal guarantees. But as I say, it depends on a case by case basis as to what the facility is that will be offered to you.

So, I hope that’s helpful. If you need any help, just shout.

Otherwise, look out for some more of my videos on what help is available.

KMA Accountancy Business Survival Toolkit

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That’s it from Kim at KMA Accountancy, the most recommended and referred Accountant in South Manchester and Cheshire.

 

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That’s it for this edition of KMA’s Help videos regarding Coronvirus and help available to small businesses.

If we can help with anything included in this edition or if you’d like to talk to us about anything Accountancy or Business Development, please get in touch.

Call us now on 0161 410 0020.

 

Disclaimer
The comments above do not count as advice on which you should rely on.  It is provided for general information purposes only. Professional or specialist advice should always be sought before taking any action relating to the above. We make no representation, warranty, or guarantee that the comments above will meet your requirements. The comments above are subject to change.

 

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