Bounce back loan

[anonuk]

From what I've read, there are no restrictions other than you have to use the loan for the company (i.e. you can't go and buy a new £2,000 flat screen tv for your living room at home, etc).

So, if your ltd company needs the cash for paying the wages of those who aren't furloughed, I believe that's ok. Lloyds even state you are free to use the loan to refinance your existing credit obligations although I'm not sure that was the governments intention

 

[Mark T Jones]

Sorry to be dense, but if I, as a LTD company director apply for this, do I have to pay tax on it if I take it out of the business?

Say I borrowed £10,000, will I pay corporate tax when it arrives in my account?

Could I use it to pay myself a salary or dividend?

Or could I, as a LTD Company directory, apply for it myself, not through my company? As if I'm a sole trader?

Thanks

it’s a loan, not revenue so corporation tax doesn’t apply

in reality you can use it for any purpose, including paying yourself (there is no realistic way they can enforce restrictions)

however, there are specific rules on dividends and it’s unlikely you will qualify if you haven’t been trading.

 

[Mr D]

From what I've read, there are no restrictions other than you have to use the loan for the company (i.e. you can't go and buy a new £2,000 flat screen tv for your living room at home, etc).

So, if your ltd company needs the cash for paying the wages of those who aren't furloughed, I believe that's ok. Lloyds even state you are free to use the loan to refinance your existing credit obligations although I'm not sure that was the governments intention

I daresay someone could figure out a way that the business needs a £2k television....

Training purposes maybe?

 

[KIKNIGHT]

Update for anyone - HSBC are now accepting applications and it looks like they will accept them if you do not bank with them. You have to call to open a temporary feeder account, I just spoke to them and they are having issues with these but said to call back "within a couple of hours".

I suppose whether the application then gets accepted after that is another matter! Will keep people updated.

System was easy to use to apply for a feeder account, however, mine was declined so no further on and my business account is with Monzo who are not on the list!

 

[Stephen Parry]

Update for anyone - HSBC are now accepting applications and it looks like they will accept them if you do not bank with them. You have to call to open a temporary feeder account, I just spoke to them and they are having issues with these but said to call back "within a couple of hours".

I suppose whether the application then gets accepted after that is another matter! Will keep people updated.

Which number did you call as everytime I call the 0800 number on their website. I get told wrong department and sit on hold for an hour.

 

[BusterBloodvessel]

System was easy to use to apply for a feeder account, however, mine was declined so no further on and my business account is with Monzo who are not on the list!

Sorry to hear that. Was it an instant decision then?!

Which number did you call as everytime I call the 0800 number on their website. I get told wrong department and sit on hold for an hour.

I called the 0800 number this morning, however when I've called back now they told me I have to call an 0345 number - which when I called it initially seems to be a number for people with an existing account as it asked for account details. I've now been on hold myself 15 minutes and am not holding out much hope.

 

[anonuk]

Applied for our loan with Santander at about 8:30am, just received our documents to sign saying our application has been approved. Will see how long it takes for the money to be in our account.

 

[ADW]

Applied for our loan with Santander at about 8:30am, just received our documents to sign saying our application has been approved. Will see how long it takes for the money to be in our account.

Off to the virtual pub to celebrate! Seemed to work well then.

 

[The Soup Dragon]

Does anyone know what the rules are if your company is owned in a group structure with other companies?

 

[KIKNIGHT]

Sorry to hear that. Was it an instant decision then?!

Yes but the online system prompted me to have to apply for a whole new business account which I didn't want. There was no option for the 'feeder account'. On hold now to see if they can help.

I called the 0800 number this morning, however when I've called back now they told me I have to call an 0345 number - which when I called it initially seems to be a number for people with an existing account as it asked for account details. I've now been on hold myself 15 minutes and am not holding out much hope.

 

[Porky]

Applied for our loan with Santander at about 8:30am, just received our documents to sign saying our application has been approved. Will see how long it takes for the money to be in our account.

Do you bank with Santander? Is that why it was quick?

 

[Porky]

System was easy to use to apply for a feeder account, however, mine was declined so no further on and my business account is with Monzo who are not on the list!

Did they tell you why it was declined? Bit concerning i thought these loans were 100% guaranteed if you had at least 12 months of trading? Do you think it’s because you don’t bank with them?

 

[Fulfil]

Anyone got anything back from NatWest yet ? Got the initial mail at 10-00 this morning saying I would receive "shortly" another email with details to go further in the process. Nothing yet. I am a NatWest business customer, unfortunately it seems.......

 

[Richard Cole]

Hi applied with Santander at 8am this morning, had documents to sign and say i had been approved at 2.30pm this afternoon. I do bank with Santander as my main account, i have a secondary account with Lloyds but on their site it said you could only apply if it was your main business account. I wasn't very impressed with Santander when i applied for an overdraft back when all this started, took ages to get back to me, I then got turned down so applied for CBILS loan with them and took three weeks to hear back from them, so i have been very surprised and pleased at the quick turnaround and how simple the whole process has been, so hats of to Sandander they seem to have dealt with this particular loan very well.

 

[BusterBloodvessel]

Did they tell you why it was declined? Bit concerning i thought these loans were 100% guaranteed if you had at least 12 months of trading? Do you think it’s because you don’t bank with them?

Re-reading Kiknight's post's, I think he has applied for a HSBC account rather than the actual loan, and it's the account application that's been declined.

 

[Rosco1112]

Anyone got anything back from NatWest yet ? Got the initial mail at 10-00 this morning saying I would receive "shortly" another email with details to go further in the process. Nothing yet. I am a NatWest business customer, unfortunately it seems.......

nope note heard a squeek! What a joke of an institution Natwest are, their complete and utter incompetence is beggars belief.

They probably don’t want to give these loans out as people like myself will certainly use some of it to consolidate debts at rip off rates they have been charging us all these years. My current business loan is 10% with Natwest.

 

[Mr D]

Applied for our loan with Santander at about 8:30am, just received our documents to sign saying our application has been approved. Will see how long it takes for the money to be in our account.

Wow, that was quick.
Last time I applied for a loan with them the decision took 3 weeks.
And was a rejection.

If nothing else the banks appear to have got with the program of working quicker on this loan.

 

[Phil.]

Just to confirm has anyone actually been able to apply for the biz bounce back loan who doesn't bank with any of the approved ten lenders? We bank with TSB. It would seem all banks require us to sign up for a new account in the first instance?

 

[BusterBloodvessel]

Update - I was on hold with HSBC for exactly 1 hour before somebody answered. I've then been through a 15 minute phone call where I basically had to tell them;

- Company name, reg number, nature of business, registered address
- Date we started trading
- Last year turnover & estimated this year turnover

Plus my own details & contact details. That was about it I think - they've said it will now be 3-5 days before they get in touch with details of the Temporary Feeder Account, once I have those details I can make the application online for the loan.

Will let you know how I get on.

 

[KIKNIGHT]

Did they tell you why it was declined? Bit concerning i thought these loans were 100% guaranteed if you had at least 12 months of trading? Do you think it’s because you don’t bank with them?

They declined the opening of the business bank so a pointless exercise and I agree, it is 100% government backed so all a little confusing!

 

[KIKNIGHT]

They declined the opening of the business bank so a pointless exercise and I agree, it is 100% government backed so all a little confusing! And I didn't want a business account, only the feeder account!?

 

[KIKNIGHT]

Re-reading Kiknight's post's, I think he has applied for a HSBC account rather than the actual loan, and it's the account application that's been declined.

Yes that is right - I only wanted the feeder account but I had to apply for a full account which was then declined .

 

[Newchodge]

I bank with Starling. They cannot yet offer loans but have asked for expressions of interest based on account number and amount wanted.

 

[BusterBloodvessel]

Yes that is right - I only wanted the feeder account but I had to apply for a full account which was then declined .

You have to unfortunately put up with the long wait on the phone - see my post a few posts back.

 

[Rosco1112]

Ironically I just had a call from Natwest business team regarding my initial enquiry 6 weeks ago for a payment holiday on my existing loan. I asked her about the bounce back loan scheme and she told me we will receive an email by close of business today with the info on next stage of application

 

[Mark T Jones]

If your need is not urgent id strongly recommend waiting a week or 2 when the system is under less pressure and glitches have been ironed out.

 

[Fulfil]

Ironically I just had a call from Natwest business team regarding my initial enquiry 6 weeks ago for a payment holiday on my existing loan. I asked her about the bounce back loan scheme and she told me we will receive an email by close of business today with the info on next stage of application

Thanks, that's interesting, will see what arrives.

 

[KIKNIGHT]

Yes that is right - I only wanted the feeder account but I had to apply for a full account which was then declined .

UPDATE: Called HSBC 0345 760 6060 only on hold for 15 mins. Feeder account applied for over the phone, was told that they system should NOT have prompted me to apply for a business account but to call this number (it didn't).

 

[KIKNIGHT]

How about if you have more than one business account with the approved providers? Should you apply to all and see which one accepts first (a client has just asked me this question). Thanks for your help.

 

[Red Wood]

anyone managed it with Barclays... When I try online, it is unavailable. Says due to demand try again later or if the problem persists contact account manager

 

[swankypants69]

Anyone got anything back from NatWest yet ? Got the initial mail at 10-00 this morning saying I would receive "shortly" another email with details to go further in the process. Nothing yet. I am a NatWest business customer, unfortunately it seems.......

Yep same here, awaiting the second email........ watch this space!

 

[Gordon - Commercial Finance]

Yep same here, awaiting the second email........ watch this space!

Similar from RBS currently. Can register interest and then await an email with full application.

Just saw in the news though that the banks have had 45,000 applications today - explains perhaps some of the delays.

 

[swankypants69]

Similar from RBS currently. Can register interest and then await an email with full application.

Just saw in the news though that the banks have had 45,000 applications today - explains perhaps some of the delays.

yeah its understandable to be fair

 

[Rosco1112]

I received my follow up email an hour ago and filled in the application, just got to wait and see if it gets accepted

BTW the lady I spoke to from Natwest business team said in the terms and conditions we are not allowed to use the loan to re-finance existing debt but not sure how they can really police this

 

[ville1401]

Anyone got anything back from NatWest yet ? Got the initial mail at 10-00 this morning saying I would receive "shortly" another email with details to go further in the process. Nothing yet. I am a NatWest business customer, unfortunately it seems.......

Nope, exactly the same as you.

 

[Opinion87]

Is there anything stopping businesses taking the loan, taking it as dividend or re-paying Directors Loan account and then using the Spongebob plan or whatever?

 

[Mr D]

Similar from RBS currently. Can register interest and then await an email with full application.

Just saw in the news though that the banks have had 45,000 applications today - explains perhaps some of the delays.

To be honest that figure looks tiny - perhaps they had 45,000 applications they can deal with along with several times that who cannot yet apply?

 

[Gordon - Commercial Finance]

To be honest that figure looks tiny - perhaps they had 45,000 applications they can deal with along with several times that who cannot yet apply?

If you mean 45,000 applications is a tiny number compared to how many businesses you thought would apply, I’m not sure I think it looks about right as it’s really just these banks’ existing customers. There will also be some who will wait until the dust settles. I think that’s about right.

If you mean 45,000 is a tiny number of applications to deal with and they should be coping better, then you’re wrong.

 

[Dave Boatman]

anyone managed it with Barclays... When I try online, it is unavailable. Says due to demand try again later or if the problem persists contact account manager

It took me a while this afternoon, I received error messages nearly every time I pressed next but eventually got to the end. Money should be in account within one day

 

[Dave Boatman]

Is there anything stopping businesses taking the loan, taking it as dividend or re-paying Directors Loan account and then using the Spongebob plan or whatever?

It’s not income so it can’t be taken as a dividend.
Repaying Directors Loan and leaving other creditors high and dry would be a preferential payment so could be reversed by a liquidator.
In reality some will no doubt try it.