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Bounce Back Loan

The Bounce Back Loan Scheme (BBLS) enables smaller businesses to access finance more quickly during the coronavirus outbreak.

Standing Meeting
ABOUT THE SCHEME

The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.

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ELIGIBILITY

You can apply for a loan if your business:

  • is based in the UK

  • was established before 1 March 2020

  • has been adversely impacted by the coronavirus

If your business was classed as a business in difficulty on 31 December 2019 you’ll need to confirm that you’re complying with additional state aid restrictions.

WHO CANNOT APPLY

Businesses from any sector can apply, except:

  • banks, insurers, and reinsurers (but not insurance brokers)

  • public-sector bodies

  • state-funded primary and secondary schools

  • Businesses from any sector can apply, except:

  • banks, insurers, and reinsurers (but not insurance brokers)

  • public-sector bodies

  • state-funded primary and secondary schools

 

 

 

IF YOU'RE ALREADY CLAIMING FUNDING

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  • You cannot apply if you’re already claiming under:

  • Coronavirus Business Interruption Loan Scheme (CBILS)

  • Coronavirus Large Business Interruption Loan Scheme (CLBILS)

  • COVID-19 Corporate Financing Facility

  • If you’ve already received a loan of up to £50,000 under one of these schemes you can transfer it into the Bounce Back Loan scheme. You have until 4 November 2020 to arrange this with your lender.

HOW LONG THE LOAN IS FOR / LENDERS

How long the loan is for

The length of the loan is 6 years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.

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There are 11 lenders participating in the scheme including many of the main retail banks. You should approach a suitable lender yourself via the lender’s website.

The lender will ask you to fill in a short online application form and self-declare that you are eligible.

The lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed.

IF THE LENDER TURNS YOU DOWN

If one lender turns you down, you can apply to other lenders in the scheme.

You may want to consider using a broker to find the right type of finance for your needs, or do your own research using the British Business Bank’s finance guide.

FIND OUT MORE

CBILS for SMEs – how smaller businesses can apply for the scheme

CBILS: current accredited lenders – lists of lenders already providing finance through CBILS

CBILS for accredited lenders – information for lenders on how to provide finance through CBILS

Become a CBILS accredited lender – details of accreditation for prospective lenders

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