Bounce Back Loan Scheme

*Updated on May 5th 2020*

Following the announcement from the government of a new fast track finance scheme for small businesses, we wanted to provide a quick summary of what we know so far about the ‘Bounce Back Loan Scheme’.

The new scheme is designed to help small businesses suffering from the negative effects of COVID-19, by providing loans with a 100% government-backed guarantee for lenders.

The BBL scheme was launched for applications on 4th May 2020 via a network of accredited lenders and will be easy to apply for, reaching businesses within days of their application.

So far almost 110,000 small businesses have applied for a loan through the scheme with £3.3bn provided in support, at an average of £30,000 per loan.

Lloyds reported seeing 5,000 applications within three hours and Barclays confirmed that they had approved 6,000 applications, worth £200m, by the afternoon.

While most lenders on the scheme will only consider existing customers, HSBC have confirmed that they will consider applications from non-customers.

 

Highlights of the scheme:

  • Loan Minimum of £2000 up to a maximum of £50,000
  • Loan terms of up to 6 years
  • No interest or fees for first 12 months
  • No loan repayments for the first 12 months
  • Low interest rates for remainder of the loan

Eligibility:

To apply, your business must be:

  • UK Based
  • Negatively affected by COVID-19
  • Was not an ‘undertaking in difficulty’ on 31 December 2019

The following businesses will not be able to apply:

  • Banks, insurers and re-insurers
  • Public sector bodies
  • Further education establishments if grant funded
  • State funded primary and secondary schools

You will not be able to apply if you are already claiming funding via the Coronavirus Business Interruption Loan Scheme (CBILS).

However, if you have received a loan of up to £50,000 under CBILS and would like to transfer it to the Bounce Back Loan Scheme, you can arrange this up until 4th November 2020.

 

Links To Lenders and Application forms:

Below you’ll find links to the approved BBLs lenders and their application forms.

Most providers are prioritising their own customers first before considering new enquiries.

Barclays – Click here

Lloyds Bank – Click here

Santander – Click here

Clydesdale Bank – Click here

Ulster Bank – Click here

Danske Bank – Click here

HSBC – Click here

NatWest – Click here

Bank of Scotland – Click here

 

More information will be published shortly, and we will update this blog when those details are released.

If you would like further information on the BBL scheme or would like to check your eligibility please call 01242 395 507 or book a call back.