Bounce bank loan program available for ads


The Bounce Back loan will be available from next week (9 a.m. on Monday, May 4) and Chancellor Rishi Sunak has confirmed that for most businesses the money should arrive within 24 hours.

Sunak said, “We are announcing a new micro-loan program, providing a simple, quick and easy solution for those in need of small loans.

“Businesses will be able to apply for these new rebound loans for 25% of their turnover, up to a maximum of £ 50,000, with the government paying interest for the first 12 months.

“The Economic Secretary and I have been in close discussions with the banks, and I am happy to say that these loans will be available from 9 am next Monday.

“There will be no prospective tests of commercial viability; no complex eligibility criteria; just a simple, quick and standard form for businesses to fill out.

“For most businesses, loans should arrive within 24 hours of approval. And I decided, for this specific device, that the Government will support the loan by guaranteeing the lender 100% of the loan.

Emma McClarkin, managing director of the British Beer & Pub Association (BBPA), said the loans would help some pubs, which was welcome, but only a minority.

Not viable

The financial assistance offered to pubs by the government:

Rebound Loan

Ads will be able to apply for loans for 25% of turnover, backed by the government from next week.

Coronavirus Business Interruption Loan Program

To be eligible, companies must be UK-based with annual turnover of no more than £ 45million and have a loan proposal which, but for the current pandemic, would be considered viable by the lender and , for which, the Lender believes that the provision of financing will allow the company to get out of any difficulty in the short to medium term.

The government will provide a business interruption payment to cover the first 12 months of interest payments and any fees collected by lenders.

Coronavirus Business Interruption Loan Program

The government-backed loan means companies with turnover of over £ 45million will now be able to apply for up to £ 25million in financing, and companies with turnover of up to up to £ 250million will be able to claim up to £ 50million. finances.

Business rate

Chancellor of the Exchequer Rishi Sunak has announced that all pubs will benefit from a business tariff holiday for the next 12 months, regardless of their assessed value on March 17.

VAT

The Chancellor also announced that the government was deferring VAT for the next quarter.

Leave plan

The Coronavirus Job Retention Scheme was announced on Friday March 20 to guarantee employers an alternative to placing staff on unpaid leave. The scheme is available to all UK businesses, so everyone in the industry will be eligible, as long as it is a UK business.

HMRC’s online portal is now operational and employers can use it to enter employee contact details and receive the grant in the following days.

Once accepted by HMRC, employers will be reimbursed 80% of workers’ wages – up to a maximum of £ 2,500 per month.

Subsidies

When he disclosed the business tariff holidays, Sunak also announced that pubs with an assessed value of less than £ 51,000 would be eligible for grants.

The government offers grants of £ 25,000 for pubs with a taxable value between £ 15,001 and £ 51,000, and a grant of £ 10,000 if the value is less than £ 15,000.

Help for the self-employed

The independent operators will be able to have 80% of their monthly income covered by the State, calculated on the average of the profits of the last three years.

This scheme offers a maximum payment equivalent to £ 2,500 per month, the same as staff currently on leave and those receiving the grant can continue to work or have other employment, including volunteer work.

HMRC aims to contact eligible people by mid-May and will make payments by early June.

In the meantime, operators can apply for universal credit and receive up to a month in advance without having to physically visit a Jobcenter.

She added: “The reality is that the announced measures will not help the vast majority of pubs who are currently struggling to access the Coronavirus Business Interruption Loan program.

“For many pubs, taking on debt in the form of a loan is not even a viable option. For those taking out loans, it is imperative that they have more time to repay them in order to increase their chances of staying open after Covid-19.

“With this announcement, the government forgot that there are still 10,000 pubs in the UK that do not receive any government support as they are not eligible for grants.

“These ads will almost certainly not be eligible for the Bounce Back loan either. They are helpless. These pubs are viable businesses, they are the social hub that unites us all. An investment in pubs now is an investment in the long term future of communities across the UK.

“When this crisis is over, the first place a lot of people will want to visit is their pub. Without further specific support, these pubs and their communities are in danger. “

UKHospitality chief executive Kate Nicholls also praised the project, but was wary of the debt it could entail.

Better access is needed

She said: “Additional business support is certainly welcome and loans accelerated with straightforward eligibility criteria.

“Too many businesses are denied loans and many of the successful ones haven’t seen the money yet.

“We need much better access to loans where businesses want it, but we also need to remember that for some businesses, taking on more debt will not be the answer.”

The Wine & Spirit Trade Association also welcomed the new loan program, but called on the government to do more.

Managing Director Miles Beale added: “This new support announced today by the government, whereby small businesses can apply for 100% government guaranteed loans, accounting for 25% of turnover up to £ 50,000 is welcome and can support the continued survival of businesses across the wine and spirits industry.

“However, as we have said before, a lot of the support announced is loans that will have to be repaid. In this case, a ceiling of £ 50,000 is low and the government could have gone further.

“The additional debt burden is particularly unattractive for companies in the supply chain who do not yet benefit from government support given to other hotel companies in the form of grants, but for whom, just like pubs, bars and restaurants. restaurants, sales were reduced. to zero, practically overnight.

“We have made it clear that what these businesses need is for the government to recognize their value in the same way they have done for other parts of the hospitality industry. These companies may well be the last to be allowed to reopen.

“And, even when they are allowed to resume trading, it is likely that they will still be forced to operate at reduced capacity or be severely restricted. This impact will be felt equally by companies in the supply chain.

“The government must extend the exemption from commercial tariffs and the availability of government subsidies to supply chain companies on commerce, broadening its definition of hospitality to include them. This would represent a much more favorable measure.

“The government must recognize that persisting with such a narrow definition of the hospitality industry is harmful – there will be no hotel industry without the companies that supply pubs, bars and restaurants.”

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