Bounce Back Loan Scheme

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 31st March 2021

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