Bounce Back Loan Scheme

Support provided by British Business Bank

What does this involve?

Deadline for applications is 31 March 2021.

Accessing finance quickly is important for smaller businesses hit by coronavirus disruption. The Bounce Back Loan Scheme (BBLS) allows small- to medium-sized businesses to apply for a loan 100% guaranteed by the UK Government.

You can apply for loans in any amount from £2000 up to 25% of your turnover. The maximum loan amount is £50,000.

You can apply through one of 11 accredited lenders. If you are refused by one lender, you can apply through another.

The Bounce Back Loan scheme is open to applications until 31 March 2021.

If you already have a Bounce Back Loan but borrowed less than you were entitled to, from 10 November 2020 you can top up your existing loan to your maximum amount. You must request the top-up by 31 January 2021.

Am I eligible?

Yes, if your business:

  • has been impacted by the coronavirus (Covid-19) pandemic
  • was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)
  • is engaged in trading or commercial activity in the UK and was established by 1 March 2020
  • is not in bankruptcy or liquidation at the time it submits its application for finance
  • derives more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges)

Businesses from any sector can apply, with the exception of:

  • credit institutions (banks or building societies)
  • insurance companies (not insurance brokers)
  • public sector bodies
  • state-funded primary and secondary schools
  • individuals other than a sole trader or a partner acting on behalf of a partnership

You are not eligible if you have already received (or are applying for) a Bounce Back Loan, or are already claiming under the following schemes:

  • Coronavirus Business Interuption Loan Scheme (CBILS)
  • Coronavirus Large Business Interuption Loan Scheme (CLBILS)
  • COVID-19 Corporate Financing Facility

If you have received a loan of up to £50,000 through one of these schemes, it can be transferred to the Bounce Back Loan Scheme through your lender.

You can read the full eligibility criteria on the British Business Bank website.

What does this cost?

It is free to apply to the scheme.

If you receive a loan, you don't have to pay fees or interest for the first 12 months. After 12 months, interest will be charged at 2.5% per year.

The length of the loan is 6 years, but you can repay early without paying a fee. 

Before your first repayment is due, your lender will contact you about further options to:

  • extend the term of your loan to 10 years
  • move to interest-only repayments for a period of 6 months (you can use this option up to 3 times)
  • pause your repayments for a period of 6 months if you have already made at least 6 repayments (you can use this option once)

Who is this for?

The scheme is for small- to medium-sized businesses looking to borrow between £2,000 and £50,000.

How long does this take?

Timescales will vary depending on your lender.

Important information

The length of the loan is six years. There is no fee if you repay it early.

You are responsible for repaying 100% of the loan.

The Bounce Back Loan scheme is open to applications until 31 March 2021.

Next steps

Visit the British Business Bank website to view a list of lenders and find out how to apply.

Support provided by British Business Bank

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