4 May 2020

This update covers bounce back loans, a new online tool for the self-employed, a warning about protecting pensions, and free government webinars. 

Bounce back loans now open for applications 

The government’s bounce back loan scheme is now open for applications. Find out more and apply. 

The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. Loan terms will be for up to six years. The government will work with lenders to agree a low rate of interest for the remaining period of the loan. 

If you have already set up a business interruption loan you have until 4 November 2020 to transfer this to the bounce back scheme. You will need to arrange this with your lender. 

Details about the bounce back loan scheme can be found on the British Business Bank website. 

Bounce back loans: comment from NHBF president Ian Egerton 

“We welcome the bounce back loan which will help many salons and barbershops. 
“However, for salons and barbershops in large cities it’s more about survival than ‘bouncing back’. Unfortunately, many businesses in  city centres, including my own in London, missed out on government grants because of high business rates which took us above the eligibility threshold. 
“The bounce back loan will enable my business, The Stress Exchange, and hopefully others in the same situation, to focus on reopening while rebuilding our income – especially as salons and barbershops may face a drop in takings initially due to the social distancing measures that will probably be continued for a while yet.”

 

New online tool launched for self-employed 

This week HMRC will start contacting those who may be eligible for the new self-employment income support scheme. The scheme offers a taxable grant worth 80% of average trading profits up to a maximum of £7,500, equivalent to three months’ profits. The self-employed can now use an online tool to check if they are eligible for a grant. Find out more. 

Protect your pension 

Fears over the financial effects of the coronavirus outbreak may make people more vulnerable to pension scammers. The Financial Conduct Authority (FCA) is warning that pension scammers are very sophisticated and can be difficult to spot. Find out how to avoid pension scams on the FCA’s website. 

Don’t rush into any decisions

There are also concerns that people may be panicked into make rushed decisions about their investments. The Pensions Regulator is urging savers to stay calm and not make any hurried decisions that could harm their long-term interests. Find out more. 

Government webinars 

The government is holding a series of free webinars to help businesses. Find out more. 

See all updates