The Bounce Back Loan Scheme (BBLS) is now closed to new applications, including applications for Top-Ups
BBLS applications received by 23.59 on 31 March 2021 can be processed through to 31 May 2021
Unlock £2,000 to £50,000, depending on turnover
- For SMEs, micro businesses and other businesses.
- No set-up fees.
- First 12 months of interest payments covered by government.
- Term loan repaid over six years.
- No repayments during the first 12 months for the customer.
We’re here to help get things moving
The Bounce Back Loan Scheme (BBLS) provides financial support to businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak and that can benefit from £50,000 or less in finance.
The scheme is a part of a wider package of government support for UK businesses and employees.
How BBLS works
As a British Business Bank accredited lender we can provide a six-year term loan from £2,000 up to 25% of a business’ turnover. The maximum loan amount is £50,000.
The scheme gives the lender a full (100%) government-backed guarantee against the outstanding balance of the facility. You will not be expected to sign up to any Personal Guarantees.
However, it’s important to remember that the borrower always remains fully liable for the debt.
You can also find answers to frequently asked questions through the British Business Bank’s FAQs.
See our terms & conditions for further information about our BBLS loans.
BBLS key features
Borrow from £2,000 to £50,000
Fixed rate of 2.5% per year
Nothing to pay for 12 months
Fixed 6 year terms
No upfront or early settlement fee
Fast access to funds
More about BBLS
Following the Chancellor of the Exchequer’s announcement on 27 April 2020, the Bounce Back Loan Scheme is now open for applications. Delivered by lenders accredited by the British Business Bank for this scheme, Bounce Back Loans target small and micro businesses in all sectors*, providing loans from £2k up to 25% of the business’ turnover with a maximum loan of £50k. Providing lenders with a 100% government-backed guarantee and standardising the application form is expected to lead to a faster process with many loans becoming available within days.
*Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive), public sector bodies, a state-funded primary or secondary schools and insurance companies are not eligible to apply and subject to State-Aid restrictions.
The Bounce Back Loan Scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year. The government will cover interest payable in the first year. Note: The guarantee is to the lender, not the borrower. The borrower always remains 100% liable for the debt.
- Up to £50,000 loan: Loans will be from £2,000 up to 25% of a business’ turnover or £50,000, whichever is lower.
- 100% guarantee: The scheme provides the lender with a government-backed, full guarantee (100%) against the outstanding facility balance, both capital and interest. The borrower always remains 100% liable for the debt.
- Interest rate: The government has set the interest rate for this facility at 2.5% per annum meaning businesses will all benefit from the same low rate of interest.
- Interest paid by government for 12 months: The government will make a Business Interruption Payment to the lenders to cover the first 12 months of interest payable, so businesses will benefit from no upfront costs.
- No principal repayments for first 12 months: Borrowers will not have to begin principal repayments for the first 12 months, thereafter capital will be repaid on a straight line basis.
- No guarantee fee for businesses or lenders to access the scheme.
- Finance terms: The length of the loan is for six years but early repayment is allowed, without early repayment fees.
- No personal guarantees: No personal guarantees are allowed, and no recovery action can be taken over a principal private residence or principal private vehicle.
Pay as you grow
Originally announced by the Chancellor of the Exchequer in September 2020, Pay As You Grow (PAYG) will enable businesses due to start repaying their Bounce Back Loans to:
- Request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%
- Reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan.
- Take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan.
Borrowers can use these options individually or in combination with each other, and remain responsible for repaying their Bounce Back Loan and fully liable for the debt.
Borrowers should be aware that they will pay more interest overall if they use one or more of these options, and that the length of the loan will increase in line with any repayment holidays taken.
What does this mean for you?
You do not have to do anything. Please note that we will notify you three months prior to the first BBL repayment date when you will be able to choose your preferred option.
The finance hub
We are aware businesses may be worried about their finances or how to manage repayments of their Bounce Back Loan.
The British Business Bank have a range of guidance and resources available to all businesses, including content on managing cashflow and a list of independent advice services.
Please click on the Finance Hub, created by the British Business Bank, to access support and guidance around managing debt and dealing with debt.