Bounce Back Loan Scheme

Bounce Back Loan Scheme (BBLS) opens

Monday 4th May 2020

 

UPDATE – GOOD NEWS! THIS SCHEME IS WORKING FOR THE MAJORITY OF BANKS AND THE MONEY IS ARRIVING IN BANK ACCOUNTS SWIFTLY

 

Key facts

  • Is helping small businesses by lending up to 25% of annual turnover, interest free for a year
  • To a maximum loan value of £50,000 with a lower limit of £2,000
  • 100% backed by the government to the lender
  • There are no personal guarantees required
  • Repayment can be at any time, the government are paying any fees
  • Is a simple and quick stop gap for companies who need additional funding
  • Your business must be negatively impacted by the Coronavirus outbreak
  • The loan is for six years (but can be repaid sooner)
  • After the first year (where the government pays the interest) the rate will be 2.5%

 

Procedure

  • You are advised to go to your own business bank first
  • If they turn you down you are encouraged to approach a different bank
  • There will be a short application form to complete via the website of the lender you approach
  • If you are in the process of applying for a CBILS loan you can ask to switch (CBILS has now changed its lower limit to £51,000 to avoid duplication and confusion

 

Who is not eligible?

  • If you business was a ‘business in difficulty’ on December 31st 2019 you may not be eligible
  • State owned schools, insurance companies, credit institutions or public sector organisations
  • A business undergoing bankruptcy proceedings
  • A business where less that half it’s income if from trading activity
  • You are already in possession of the CBILS loan (but you can see if you can switch if your CBILS loan was for £50,000)

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If you have a question about the scheme there’s a FAQ section here

 

Here’s the link to see who is offering the loan if you are not able to get it through your existing bank