Bounce Back Loans Scheme (BBLS)
The Government launched this scheme specifically for small and medium-sized businesses, and allows them to borrow between £2,000 and £50,000 (up to 25% of their turnover). The government guarantees 100% of the loan and there are no fees or interest to pay for the first 12 months. After 12 months the interest rate is 2.5%.
In September 2020 the Chancellor introduced an initiative called 'Pay as You Grow' to the BBLS. This allows a longer period for repayment (10 years), which will cut monthly repayments in half. Businesses struggling to repay the loan also have the option to make interest-only payments or suspend payments altogether for 6 months.
Applications for this scheme have been extended to Monday 30th November 2020
The bounce back loan can be applied for via a bank. Click here for a list of banks participating in the scheme.
Note: Bounce back loans are distinct from the Coronavirus Business Interruption Loan Scheme. Please see comparison table below
|Bounce Back Loan Scheme||Coronavirus Business Interruption Loan Scheme|
|Amount you can borrow||£2,000 to £50,000||£50,001 - £500,000|
|Loan term length||6 years (option to extend to 10 years)||2 - 10 years (according to agreement)|
|Terms in first 12 months||£0 repayment and 0% interest||£0 repayment and 0% interest|
|Interest rate||2.5% fixed||Set by the lender, typically 1.8% - 7.4% APR|