Any details of the 100% state backed loan?

I can't find any concrete (i.e. HMRC/Gov) details of this to share with clients

Didn't find your answer?

Has anyone any details of this scheme announced yesterday 27/4?

Thanks!

Replies (13)

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
28th Apr 2020 10:30

Richard's just cranking through it now, Peter.

As has happened a couple of times in the past month or so, the Chancellor has sneaked out significant technical updates after the big showpiece statements rather than during. (Not to mention the somewhat understated way HMRC amends its documentation).

Sorry to hold you up this morning, but I'll try to come back and alert you when it's live.

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By Cheshire
28th Apr 2020 10:49

I read the scheme would be available 'next week' - 2 page online form.

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By ireallyshouldknowthisbut
28th Apr 2020 10:55

https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

Main gotcha is you cant have one if you have an existing loan.

No mention on personal liability here.

If there isnt any, then it will be "free money" if you are going down the tubes.

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Replying to ireallyshouldknowthisbut:
the sea otter
By memyself-eye
28th Apr 2020 11:33

That thought had occurred to me!

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Replying to ireallyshouldknowthisbut:
blue sheep
By NH
29th Apr 2020 09:38

Where does it say that - about having an existing loan?

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Replying to NH:
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By fawltybasil2575
29th Apr 2020 09:48

@ NH.

Whether rightly or not, I understood ireally . . to be referring to loans only from CBILS, ie these words:-

"You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS)".

Basil.

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Replying to NH:
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By Cheshire
29th Apr 2020 11:06

I read the response as Basil did.

The same link does also state that if you have rec'd a loan (up to £50k) under CBILS you can arrange to fer it to the Bounce Back loan. Depends on the facility taken up I guess.

Here is the link https://www.gov.uk/guidance/apply-for-a-coronavirus-bounce-back-loan

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By fawltybasil2575
28th Apr 2020 11:03

To add to the links to GOV.UK kindly provided by members above, the link below to ICAEW guidance may also assist – reference is made therein to the loan application’s being (impliedly) limited to the lesser of (i) £50,000 and (ii) 25% of turnover.

There is however no mention of “25% of turnover” in the GOV.UK guidance (perhaps ICAEW are aware of such proposed turnover delimiting factor from their discussions with the Government - conceivably more information on that point will be revealed before the 4 May 2020 proposed date for the commencement of the scheme):-

https://www.icaew.com/insights/viewpoints-on-the-news/2020/apr-2020/gove...

Basil.

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Replying to fawltybasil2575:
Richard Hattersley
By Richard Hattersley
28th Apr 2020 11:42

Hi Basil,

Sunak mentioned the "25% turnover" in his speech to Parliament. You can read the transcript here: https://www.gov.uk/government/speeches/chancellors-statement-to-parliament

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Replying to Richard Hattersley:
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By fawltybasil2575
28th Apr 2020 11:55

Thanks, Richard: a very useful link.

Perhaps updated GOV.UK guidance will soon explain the "lesser of £50,000 and 25% of turnover" point; and hopefully indicate the Accounts period upon which that turnover figure is based:)

Basil.

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John Stokdyk, AccountingWEB head of insight
By John Stokdyk
28th Apr 2020 12:35

Richard's article is now live here: https://www.accountingweb.co.uk/business/finance-strategy/small-business...

(featuring a quote from Ireallyshouldknowthisbut)

Thanks to them and all the other Aweb members for helping fill the information vacuum this morning.

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By rjshaul
28th Apr 2020 14:05

What is the definition of "small" - Companies act definition?

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