British Business Bank accredits new lender to Bounce Back Loan Scheme
- GC Business Finance to offer Bounce Back Loans in the Greater Manchester region
The British Business Bank has approved GC Business Finance, part of the Growth Company, for accreditation under the Bounce Bank Loan Scheme (BBLS).
GC Business Finance will provide Bounce Back Loans of up to £50k to small and micro businesses from the Greater Manchester region that are suffering disruption to their cashflow due to lost or deferred revenues during the Covid-19 outbreak and who are not currently banking with an existing provider.
From today, the lender will put in place the operations required to start lending under the scheme and will be able to receive applications only from businesses based in Greater Manchester.
Government published statistics show over 1.4 million businesses have to date benefitted from loans worth £61.9 billion through schemes delivered by the British Business Bank. This includes 1,336,320 Bounce Back Loans worth over £40 billion, 73,094 facilities worth almost £17.2 billion through the Coronavirus Business Interruption Loan Scheme and 632 facilities worth £4.6 billion through the Coronavirus Large Business Interruption Loan Scheme.
 Businesses with an office or trading address in Greater Manchester
 Latest figures published by HMT, 22 October 2020
Notes to Editors
Covid-19 Loan Schemes
The Future Fund will support the UK’s innovative businesses currently affected by Covid-19. These businesses have been unable to access other government business support programmes, such as CBILS, because they are either pre-revenue or pre-profit and typically rely on equity investment. Initially, £250 million was made available by the government for investment through the scheme, to be matched by private investors, with the Treasury making clear the amount could be increased if needed. Due to the popularity of the Fund, more funding is being made available. Developed by government and delivered by the British Business Bank, the Future Fund launched for applications in May and will be open until the 31 January 2021.
Bounce Back Loan Scheme (BBLS)
BBLS is a demand-led scheme offering lending that targets small and micro businesses, providing loans from £2k up to 25% of the business’ turnover with a maximum loan of £50k. Providing lenders with a 100% government-backed guarantee and standardising the application form has led to a faster process with many loans becoming available within days. The Bounce Back Loan Scheme enables businesses to obtain a six-year term loan at a government set interest rate of 2.5% a year. The government will cover interest payable in the first year. The scheme will be open until 31 January 2021.
Coronavirus Business Interruption Loan Scheme (CBILS)
CBILS is a demand-led scheme offering lending to smaller businesses with turnover of up to £45m. Invoice finance and asset finance facilities are available from £1k to £5m, while term loans and revolving credit facilities are available from £50k to £5m. The government makes a payment to cover interest and lender-levied fees under CBILS for the first 12 months. The scheme will be open until 31 January 2021.
Coronavirus Large Business Interruption Loan Scheme (CLBILS)
CLBILS is a demand led scheme targeted at larger businesses with a turnover of more than £45m. CLBILS can be used to support term loans, revolving credit facilities, invoice finance facilities and asset finance facilities. The maximum amount available through CLBILS to a borrower and its group is £200m. Term loans and revolving credit facilities over £50m are offered by CLBILS lenders which have secured additional accreditation. The maximum size for invoice finance facilities and asset finance facilities is £50m. Companies borrowing more than £50m through CLBILS are subject to further restrictions on dividend payments, senior pay and share buy-backs during the period of the loan. The scheme will be open until 31 January 2021.
About the British Business Bank
The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.
The British Business Bank programmes were supporting more than £8bn of finance to over 98,000 smaller businesses at end of March 2020. Since March 2020, the British Business Bank has launched four new Coronavirus business loan schemes, delivering tens of billions of pounds of finance to over a million businesses.
As well as increasing both supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of the finance options available to smaller businesses:
- The British Business Bank Finance Hub provides independent and impartial information to high-growth businesses about their finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success. The site also features case studies and lessons from real businesses to guide businesses through the process of applying for growth finance.
- The Business Finance Guide (published in partnership with the ICAEW and a further 21 business and finance organisations) impartially sets out the range of finance options available to businesses at all stages – from start-ups to SMEs and growing mid-sized companies. Businesses can take the interactive journey at https://thebusinessfinanceguide.co.uk/
As the holding company of the group operating under the trading name of British Business Bank, British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank operates through a number of subsidiaries, none of which are authorised or regulated by the FCA or the PRA.
British Business Bank plc and its principal operating subsidiaries are not banking institutions and do not operate as such. A complete legal structure chart for British Business Bank plc and its subsidiaries can be found on the British Business Bank plc website.