Bounce Back Loans

The government has rolled out Bounce Back Loans, a digital loan scheme, to support small businesses with their cashflow in the immediate future.

Launched on Monday 4 May, the scheme fast-tracks funding to SMEs with loans that are 100% government-backed guarantee for lenders. The government will also pay any fees and interest for the first 12 months (no repayments will be made within this time).

Links to application forms

At this time not all our local banks have released their application process but here are the application forms of those providers who can.

Providers are mainly only accepting (or prioritising) existing customers first.

What we know so far

Here are the key pieces of information:

  • Borrow between £2,000 and £50,000 (up to 25% of a business’ turnover)
  • Repay over 6 years, 2.5% interest rate, no early penalty
  • Personal guarantee is not required
  • As with CBILS, loans will be interest free for the first 12 months.
  • 12 month capital repayment holiday is automatically applied at the start of the loan
  • Businesses can apply online through the 7 question forms above
  • Once approved, the cash will be available in days

If businesses need more than £50,000 then they should consider applying for a CBILS loan instead.

As with CBILS the borrower always remains fully liable for the debt.

Bounce Back Loan Scheme eligibility criteria

Businesses from all sectors can apply for a facility with few exceptions. The business must self-certify to its lender the following:

  • Confirm it is UK-based in its business activity, and established by 1 March 2020
  • Confirm it has been adversely impacted by the Coronavirus (COVID-19)
  • Confirm it is not currently using a government-backed Coronavirus loan scheme (unless using BBLS to refinance a whole facility)

Confirm it is not in bankruptcy, liquidation or undergoing debt restructuring