The Government’s Business Bounce Back Loan Scheme announced!
FosterTalk would remind all reading this information that the position of foster carer is unique. We cannot guarantee that any foster carers would be eligible for the proposed loan. Foster carers are classified as self-employed for tax purposes rather than registered as a small business. Foster carers may not be eligible due to the fragility of future income as with any other loan. If you apply you may be required to have a business account to access the loan. We have raised the issue with the Department for Education and they will be speaking to HM Treasury on this point. We will inform you of any further updates.
The government’s Business Bounce Back Loan Scheme announced 4thMay 2020 will be a life saver for Foster carers who find themselves without a placement due to COVID-19 – Foster carers whose income has dropped due to COVID-19 can apply for this scheme.
The scheme gives businesses loans of up to £50,000 with a 12 month holiday from payments and interest and subsequent repayment terms of 6 years at 2.5% interest.
The loan payment is based on 25% of business turnover as long as the business gets the majority of their income from trade – for example if your turnover from Fostering is:
£20,000 in the 2019-20 year you should automatically receive a loan of £5000 and you should receive the money in 6 working days.
To apply go to your bank’s website and type in bounce back loan –there are 7 fairly straightforward questions to answer and that’s job done.
TO BE ELIGIBLE FOR THE LOAN YOU NEED TO HAVE A BUSINESS BANK ACCOUNT. FOSTER CARERS APPEAR TO BE INELIGIBLE BECAUSE THEY DO NOT HAVE BUSINESS BANK ACCOUNTS!
You should apply in the first instance through your bank but you can try other lenders. We can only suggest that you contact your bank regarding this issue.Should you have any problems please call our tax helpline on 0121 758 5013 or email email@example.com