The Bounce Back Loan Scheme

In response to the difficulties encountered through the Business Interruption Loan Scheme, the Chancellor announced a new loan scheme - The Bounce Back Loan Scheme (BBLS) - for smaller businesses that will benefit from a 100% government-backed guarantee.

The Bounce Back Loan Scheme helps small and medium-sized businesses to borrow between £2,000 and £50,000.

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.

Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

The scheme will be 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 coronavirus

Who cannot apply

The following businesses are not eligible to apply:

• banks, insurers and reinsurers (but not insurance brokers)
• public-sector bodies
• state-funded primary and secondary schools

If you’re already claiming funding

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

If you’ve already received a loan of up to £50,000 under CBILS and would like to transfer it into the BBLS, you can arrange this with your lender until 4 November 2020.

How to apply

The full rules of the scheme and guidance on how to apply is available on the British Business Bank website. Click here to access.

GBM Accounts.