Bounce Back Loan Scheme (BBLS)

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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Information for SMEs Information for Accredited Lenders Information for Prospective Lenders

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
  • 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.

Note: As of 17 December 2020, the Government has announced that BBLS will be extended until 31 March 2021.  View the announcement about the BBLS extension

In addition, the Chancellor announced new ‘Pay as You Grow’ measures for borrowers who have accessed BBLS.  View the BBLS FAQs for more detail

It was also announced that, from 10 November 2020, participating lenders in the scheme can offer smaller businesses across the UK a ‘top-up’ to their existing Bounce Back Loan if they originally borrowed less than the maximum amount available to them.  View the announcement about the BBLS top-up and view the BBLS FAQs for more detail

 

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 £50,000Guarantee to the lender to encourage them to lendGovernment pays interest and fees for 12 monthsAffordable 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 termsSecurityNo 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