Coronavirus Bounce Back Loan Scheme

Everything you need to know about the UK government's loan scheme for SMEs.

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What is the coronavirus Bounce Back Loan Scheme (BBLS)?

On 27 April, the UK government announced a new loan scheme for small businesses affected by the coronavirus pandemic, designed to offer quick and easy finance. Under the Bounce Back Loan Scheme, businesses can apply for a loan of up to £50,000, or 25% of turnover. The government will guarantee 100% of the loan amount and pay the interest on the loan for the first 12 months.

Bounce Back loans were made available on 4 May, and businesses should receive the funds within 24 hours of approval.

Bounce Back Loan Scheme (BBLS) features

  • Loans from £2,000 to £50,000
  • Loan terms up to 6 years
  • Loan amount up to 25% of business’s turnover
  • Fixed 2.5% p.a. interest rate
  • Government guarantees 100% of loan amount
  • Can make early repayments without paying fees
  • No personal guarantee or security required
  • Interest payments covered by the government for first 12 months

Is my business eligible for BBLS?

To be eligible for the Bounce Back Loan Scheme, your business will need to meet the following requirements:

  • Has been adversely affected by the coronavirus pandemic
  • Was not considered a “business in difficulty” as of 31 December 2019
  • Is engaged in commercial activity or trading in the UK
  • Was established before 1 March 2020
  • Is not already using the CBILS or other government COVID-19-related finance facility
  • Is not in liquidation, bankruptcy or undertaking debt restructuring at the time of application
  • Earns more than 50% of its revenue from trading activity

The following types of businesses are unable to apply for a BBLS loan:

  • Credit institutions
  • Public sector organisations
  • Insurance companies
  • State-funded primary and secondary schools

How do I apply for the BBLS?

To apply for a business loan under the BBLS scheme, you will need to approach one of the accredited lenders listed below and then approach them directly. You’ll then need to complete the lender’s application form and your business will be subject to regular customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks.

Which lenders are accredited under the BBLS?

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