Update: 3rd November 2020
The Bounce Back Loan Scheme has been extended until 31st January 2021. The government has also announced that businesses will be able to top-up existing Bounce Back Loans if additional funding is needed. For more information on the changes to this scheme, visit the British Business Bank website.
Update: 28th September 2020
The deadline for new applications for the Bounce Back Loan Scheme has been extended to 30th November 2020. Businesses who have taken out a Bounce Back Loan are also being offered the chance to repay their debt over a 10-year-period through the new Pay As You Grow flexible scheme. Six-month interest-only periods and payment holidays will also be available.
What is the Bounce Back Loan Scheme?
The Bounce Back Loan Scheme allows small and medium-sized businesses to borrow between £2,000 and £50,000 to help them get back on their feet.
The government will guarantee 100% of the loan and there will no fees or interest to pay back for the first 12 months. Loan terms will be up to six years, with no repayments 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, and the scheme will be delivered through a network of accredited lenders.
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 can arrange this with your lender until 4th November 2020.