Money economist Martin Lewis told the ITV Money Show that new Business Bounce Back loans can be taken out by almost anyone, reports The Mirror.
“When it came out, I started looking at the terms, and I realized that some of the people who missed the self-help program … it could actually be a way to get support. “
In fact, you can even start a business more or less directly and apply.
“You can be a whole new business to get this,” said Martin.
The new system allows you to borrow between £ 2,000 and £ 50,000.
The amount is capped at 25% of a business’s turnover – typically for the 2019 calendar year – but a newly created business may estimate its own.
“The great thing you need to understand – the first year, no interest, and you don’t make any refunds,” said Martin.
“You can repay early without penalties. “
After the first 12 months, and after that, all banks will charge a fixed annual interest of 2.5%.
It’s not free, but it’s still cheap.
“There is no commercial loan that close,” said Martin.
“They won’t look at your credit scores – commercial or personal – so most people should be able to get them.” “
And the best news is that nothing in the rules prevents you from using that money to support your normal income.
“You are allowed to use this to support your usual income,” said Martin.
Now it’s a loan – rather than a grant that goes to others – so it has to be repaid.
But it’s better than nothing if you’re having trouble, he added.
“It might help you a bit,” said Martin.
Typically, you need a professional bank account to withdraw one, but it might be easier to set up than you think.
Martin advised people in difficulty to try one of the new online challenger banks.
“If you’re having trouble with your own bank, Starling opens [the loan scheme] Monday, “said Martin.
He pointed out that being online only, it might be faster to create a new business account with them than going to a traditional provider.
Martin has a full guide to the program – and what it can and can’t be used – online here.