We have gleaned more information on the Bounce Back Loan and thought we would share it with some bullet points below.

The Bounce Back loans are available to all sectors. The loans should be available from Monday 9am but lenders are snowed under with CBILS at the moment so that date may be pushed back.

It is recommended that you contact your own bank first but there are 52 accredited lenders..

The applications are made online and very simple – approximately two pages long – with no need for cashflows or management accounts.

It is almost a self certified approach but the claimant must be affected by COVID-19. The lenders will carry out a credit check.

The loan can be up to 25% of turnover, up to £50k maximum.

There may be some restrictions on the usage of the loan, so perhaps not to be used for dividends.

It is likely to be a standardised interest rate – somewhere between 3% and 5%. The Goverment is providing 100% security.

Whereas CBILS loans are stated as interest free in year one because the goverment is paying it, with the Bounce Back loan there is interest but it is likely to be rolled up. There is not believed to be any penalty for early repayments.

Funds should be in the account within one to two days.

You cannot have both a Bounce Back loan and a CBILS loan.

The banks have an issue to resolve under the Consumer Credit Act.

The Bounce Back loan is available to both incorporated and unincorporated businesses.

It seems that good businesses will get one of these loans if they work with a corporate manager who shows them how to get it. A bit cynical but that is the feedback we have received at the moment.