Bounce Back Loan Scheme

Bounce Back Loan Scheme

Financial support for
UK SMEs

Sorry, our BBLS applications are currently closed

Due to a high volume of applications, which we are currently processing, we will unfortunately not be taking any further applications at this time.

Please visit the British Business Bank website to apply with other accredited lenders.

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.

Full details are on the government’s website and the British Business Bank website.

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.

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.

Legal notice

Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government.
It is not authorised or regulated by the PRA or the FCA. Visit British Business Bank website.