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.
Please note that as of 2 November, the Government has announced that the Bounce Back Loan Scheme (BBLS) will be extended until 31 January 2021.
In addition, the Chancellor also announced new Pay as You Grow measures for borrowers who have accessed the Bounce Back Loan Scheme. View the BBLS FAQ for more detail.
From 10 November, it was announced participating lenders in the scheme are able to 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 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 £50,000||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