Bounce Back Loan Scheme

Posted by Emma Robison on May 4, 2020 5:26:16 PM
Emma Robison
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What you need to know about the Bounce Back Loan Scheme (BBLS)

From today, small businesses that have been adversely impacted by the Covid-19 outbreak can apply to the Bounce Back Loan Scheme. Businesses can apply for loans between £2,000 and £50,000 for a fixed term of 6 years. The maximum you can borrow is up to 25% of your business’ turnover in 2019.

With the high demand for this scheme, the Government’s BBLS website has already crashed.

How do I apply?

In the first instance, you should approach your own provider. You may also consider approaching other lenders if you are unable to access the finance you require.

You will need to fill in a short application form online, which self-certifies that your business is eligible for a loan under BBLS.

If your business is eligible, it will be subject to appropriate customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. Some state aid restrictions may apply to your application.

Note: There is high demand for finance through BBLS. Phone lines are likely to be busy and branches may not be able to handle enquiries in person.

What if my lender turns me down?

If one lender turns you down, you can still approach other lenders within the scheme.
BBLS is designed to be fast for lenders to process and quick and easy for businesses to access. To help achieve this, you will only be required to fill out a short application form online.

Am I eligible?

Your business must be able to self declare to the lender that it:
has been impacted by the coronavirus (COVID-19) pandemic

was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)

is engaged in trading or commercial activity in the UK and was established by 1 March 2020

is not using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility

is not in bankruptcy or liquidation or undergoing debt restructuring at the time it submits its application for finance

derives more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges)

is not in a restricted sector (see below)


Bounce Back Loans are available to businesses in all sectors, except the following:
Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive)

Insurance companies

Public-sector organisations

State-funded primary and secondary schools

Which lenders are BBLS accredited?

A full list of accredited lenders can be found at:
https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/current-accredited-lenders-and-partners/

Topics: Business Finance, Covid-19

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