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(Small businesses) - Bounce Back Loan Scheme

Available: CLOSED

Region: UK

Businesses will be able to borrow between £2,000 and £50,000 and access the cash within days.

Loans will be interest free for the first 12 months and businesses can apply online through a short and simple form.


Maximum Loan:

Between £2,000 and £50,000
 

Interest Rates and fees:

First 12 months of interest payments and lender-levied fees covered by Government. The remaining term will include an interest rate for the facility set at 2.5% per annum. 
 

Guarantee:

The Government will guarantee 100% of the loan. The borrower remains 100% liable for the debt. 
 

Security:

Lenders are not permitted to take personal guarantees or take recovery action over a borrower's personal assets. 
 

Repayments:

The Government will make a Business Interruption Payment to cover the first 12 months of interest payments.

No repayments will be due during the first 12 months.

The length of the loan has now been extended from 6 years to 10 years.

Early repayment is allowed without any early repayment charge. 
 

Provided by:

Delivered through a network of accredited lenders.
 

Eligibility:

You can apply for a loan if your business:

  • is based in the UK
  • has been negatively affected by the coronavirus
  • was not an ‘undertaking in difficulty’ on 31 December 2019

The following businesses are not eligible to apply:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • further-education establishments, if they are grant-funded
  • state-funded primary and secondary schools

If you’re already claiming Government funding

You cannot apply if you’re already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS).

However, if you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you may be able to arrange this with your lender.
 

How to apply

The scheme is available through a number of accredited lenders.

Further guidance can be found here.
                                    
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