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
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.