The Bounce Back Loan Scheme (BBLS) is a new scheme designed to enable businesses to access finance more quickly during the coronavirus outbreak.
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About the scheme
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. Read more at the Government’s Business Support website.
How it works
BBLS is available through a range of British Business Bank accredited lenders and partners, listed on the British Business Bank website.
A lender 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 (both capital and interest).
The borrower always remains fully liable for the debt.
Key features of the scheme
|Finance of up to £50,000||Guarantee to the lender to encourage them to lend||Government pays interest and fees for 12 months||Affordable interest rate|
|Loans range from £2,000 up to 25% of a business’ turnover. The maximum loan amount is £50,000.||The scheme provides the lender with a full (100%), government-backed guarantee against the outstanding balance of the finance (both capital and interest).|
The borrower remains 100% liable for the debt.
|The Government will make a Business Interruption Payment (BIP) to cover the first 12 months of interest payments.|
The borrower does not have to make any repayments for the first 12 months.
|The interest rate for the facility is set at 2.5% per annum, meaning businesses will all benefit from the same, affordable rate of interest.|
|Finance terms||Security||No guarantee fees for businesses or lenders|
|The length of the loan is six years but early repayment is allowed, without early repayment fees.||Lenders are not permitted to take personal guarantees or take recovery action over a borrower’s personal assets (such as their main home or personal vehicle).||There is no fee to access the scheme for either businesses or lenders.|
Find out more
BBLS for businesses – how businesses can apply for the scheme
BBLS: current accredited lenders – list of lenders already providing finance through the scheme
BBLS for accredited lenders – information for lenders on how to provide finance through the scheme
Become a BBLS accredited lender – details of accreditation for prospective lenders