The new Bounce Back loans launched

The new Bounce Back loans have launched this morning.

You can borrow up to £50,000 and it is 100% backed by the government - so no personal guarantees. Interest rate just 2.5%.

All the details on how to apply are below;

The Bounce Back Loan Scheme (BBLS) is available to businesses through a number of accredited lenders across the UK.

Please read our BBLS FAQs for businesses

HOW TO APPLY

1. FIND A LENDER

View and select a BBLS accredited lender

2. APPROACH A LENDER

You should approach a lender yourself, ideally via its website.

In the first instance, you should approach your own provider. You may also consider approaching other lenders if you are unable to access the finance you require.

You will need to fill in a short application form online, which self-certifies that your business is eligible for a loan under BBLS.

If your business is eligible, it will be subject to appropriate customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks. Some state aid restrictions may apply to your application.

Note: There is high demand for finance through BBLS. Phone lines are likely to be busy and branches may not be able to handle enquiries in person.

3. THE LENDER MAKES A DECISION

The lender has the authority to decide whether to offer you finance.

Under the scheme, lenders are not permitted to:

• take any form of personal guarantee
• take recovery action over a borrower’s personal assets (such as their main home or personal vehicle)

4. IF THE LENDER TURNS YOU DOWN

If one lender turns you down, you can still approach other lenders within the scheme.

BBLS is designed to be fast for lenders to process and quick and easy for businesses to access. To help achieve this, you will only be required to fill out a short application form online.

WHO IS ELIGIBLE

Your business must be able to self‑declare to the lender that it:

• has been impacted by the coronavirus (COVID-19) pandemic
• was not a business in difficulty at 31 December 2019 (if it was, you must confirm your business complies with additional state aid restrictions under de minimis state aid rules)
• is engaged in trading or commercial activity in the UK and was established by 1 March 2020
• is not using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility
• is not in bankruptcy or liquidation or undergoing debt restructuring at the time it submits its application for finance
• derives more than 50% of its income from its trading activity (this requirement does not apply to charities or further-education colleges)
• is not in a restricted sector (see below)

Note: The above is not an exhaustive list – see our Frequently asked questions for more information.

Bounce Back Loans are available to businesses in all sectors, except the following:

• Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive)
• Insurance companies
• Public-sector organisations
• State-funded primary and secondary schools

View our BBLS FAQs for businesses

OTHER BUSINESS FINANCE SUPPORT OPTIONS

You can find details of other government measures to support public services, people and businesses through this disruption on the Government’s Business Support website.