The Bounce Back Loan Scheme (BBLS) is now open for applications. The BBLS has been introduced to provide financial support of up to £50,000 for small and medium sized-enterprises (SMEs) located in the UK and negatively affected by the coronavirus pandemic.

The Scheme will ensure that SMEs will be able to get finance within a matter of days to ensure they are able to keep operating.

Details of the scheme

  • Loans range from £2,000 up to a maximum amount of £50,000;
  • Businesses will be able to access loans worth up to 25% of turnover;
  • Loan terms can be a maximum period of 6 years;
  • Loans will be interest free and fee free for the first 12 months;
  • The interest rate for the loan is set at 2.5% per annum;
  • No repayments will be due within the first 12 months;
  • Lenders are not permitted to take personal guarantees; and
  • The borrower remains 100% liable for the debt.

Eligibility

  • The Scheme is open to most businesses, regardless of turnover, who meet the eligibility criteria and who were established on or before 1 March 2020;
  • The business is engaged in trading or commercial activity in the UK and has been adversely affected by coronavirus;
  • More than 50% of the income of the business (together with that of any member of any group of which it is a part) is derived from its trading activity;
  • The business is a UK limited company or partnership, or tax resident in the UK;
  • The business (and any wider group of which it is part) has not yet obtained a loan through either the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, or the Covid Corporate Financing Facility, unless that loan will be refinanced in full by the Bounce Back Loan Scheme facility;
  • Whether or not the business was, on 31 December 2019, a “business in difficulty” and does not breach State aid restrictions under the Temporary Framework; and if it was a “business in difficulty” then it must confirm it does not breach de minimis State aid restrictions and will not be used to support export-related activities; and
  • The loan will only be used to provide economic benefit to the business, and not for personal purposes.

How to apply

  • BBLS is available through a range of British Business Bank accredited lenders and partners, listed on their website;
  • Application to the scheme is via a short online form; and
  • No forward looking test of business viability or complex eligibility criteria.

If you have already received a loan of up to £50,000 under the Coronavirus Business Interruption Loan Scheme (CBILS) and would like to transfer it into the Bounce Back Loan scheme, this can be arranged with your lender until 4 November 2020.

Further details and FAQs can be found here.