Bounce Back Loan Scheme - Transferable?

[BorniteIdentity]

Alright gang?

I wondered if anyone else had tried and succeeded at finding out the answer to this - so am posting in hope!

I took out a BBLS loan via HSBC in the summer. Some time. I can't quite remember when but it's not tremendously relevant. My wife and I are sole directors (and employees) of our company. It's a service company, the sort people use to avoid paying the tax they would had they been employed. They're very common in my industry (media) and you basically can't get work without the added protection of a limited company. So here we are.

However, I'm likely to close the business next year as I've gone from contracting for 5 companies to 3 - 2 of which are outside the UK. I'm confident I can operate legally and correctly as a self employed sole trader - and my accountant is also retiring too. So I want to take it on.

Question.

Can I move the BBLS from the business to me as a sole trader? I do want to wind the business up properly (rather than leaving it dormant) for the sake of tidiness. I do not wish to liquidate the business and default on the loan. I don't wish to repay it in full.

I hope I've been clear enough above. I don't normally talk in such straightforward prose, so apologies if it's a bit straightforward! I just don't want to confuse the issue.

In essence. Can I keep the money - and give it back to HSBC as agreed - but via Mr Bornite Identity rather than "Bornite Identity Limited" ??

Hope to hear
D

[C Lee Farquar]

Your accountant should clarify this for you, I don't see how this could be done. The limited Company isn't you, you are different entities.

As a new sole trader you wouldn't qualify for a loan so I don't another option than keeping the ltd. company going.

[deggles]

I think the short answer is 'no'. The slightly longer answer is 'ask HSBC'. At which point they will probably demand repayment immediately if they consider the possible folding of the company an 'Event of default'.

my Santander loan agreement said:

8. Events of Default
If any of the following occurs, it shall constitute an Event of Default and the Total Amount Payable will become immediately repayable by you:
...
c) you cease or threaten to cease to carry on business or become insolvent ...
...
e) an order is made or a resolution passed winding up the Company...

(not HSBC but suspect they're all similar)

[NickCQ]

BorniteIdentity said:

Can I keep the money - and give it back to HSBC as agreed - but via Mr Bornite Identity rather than "Bornite Identity Limited" ?

As a private individual you are not an eligible borrower under the BBLS, so a novation is out unless HSBC agree - they would be giving up the government guarantee so the interest rate would likely go up materially. I would plan to keep the company alive (with the cash inside it) or hand the cash back.