Bounce Back Loan Scheme (BBLS)

Bounce Back Loan Scheme

The Bounce Back Loan Scheme (BBLS) was designed to enable businesses to access finance more quickly during the coronavirus outbreak.

It closed to new applications and applications for Top-ups, on 31 March 2021.

Options for paying back your BBLS loan

1. Any Bounce Back Loan borrower with questions or concerns regarding repaying the loan should contact their Lender to discuss the options available.
2. Your Lender will be able to advise you on your options in the light of any other borrowing you may have with them.
3. Your Lender will explain to you about the various PAYG options, which will enable businesses 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.

Businesses that have taken out a Bounce Back Loan can use Pay As You Grow (PAYG) to help manage their cashflow to have a better chance of getting back to growth.

Find out more about Pay As You Grow.

British Business Bank have designed a guide to provide impartial information to help businesses through survival and onto recovery, helping them stabilise and move forward to growth and future success. Read our guide.

Objections to a company closing

The Bounce Back Loan Scheme (BBLS) was introduced in May 2020 to support small businesses affected by COVID-19. You can find more information on the BBLS in our FAQs.

If you have tried to dissolve your company and have received an objection to the closing of your company, this may be due to a Bounce Back Loan.

The Bounce Back Loan Scheme is a fully delegated scheme, and all communications are handled directly between the lender and the borrower. If you have received an objection to the dissolution of your company, you will need to speak directly with your lender, who are the correct body to take steps to have the matter resolved for you. 

The British Business Bank (BBB) cannot assist, as BBB did not lend to businesses directly under BBLS, and therefore cannot handle matters relating to lending.

All BBLS accredited lenders, have a direct link with BBB and can contact us should they need any clarification on the scheme or guidance on how to proceed.

How it worked

BBLS was available through a range of accredited lenders and partners.

It provided financial support to businesses across the UK that:

• were losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak
• could benefit from £50,000 or less in finance.

A lender could provide a six-year term loan from £2,000 up to 25% of a business’ turnover. The maximum loan amount was £50,000.

The scheme gave the lender a full (100%) government-backed guarantee against the outstanding balance of the facility (both capital and interest).

The borrower always remained fully liable for the debt.

View the BBLS FAQs for more details on how it worked.

A tribunal hearing took place at the end of November 2022 following requests under the Freedom of Information Act for disclosure of information regarding borrowers under various Covid-19 loan schemes.

View FAQs about the tribunal