The Bounce Back Loan Scheme (BBLS) was designed to enable businesses to access finance more quickly during the coronavirus outbreak.
It closed to new applications and applications for Top-ups, on 31 March 2021.
Options for paying back your BBLS loan
- 1. Any Bounce Back Loan borrower with concerns regarding repaying the loan should contact its/their Lender to discuss the various options available.
- 2. Your Lender will be able to advise you on your options in the light of any other borrowing you may have with them.
- 3. Your Lender will explain to you about the various PAYG options, which will enable businesses to:
- request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%
- reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan
- take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan.
Businesses that have taken out a Bounce Back Loan can use Pay As You Grow (PAYG) to help manage their cashflow to have a better chance of getting back to growth.
Find out more about Pay As You Grow.
British Business Bank have designed a guide to provide impartial information to help businesses through survival and onto recovery, helping them stabilise and move forward to growth and future success. Read our guide.
How it worked
BBLS was available through a range of accredited lenders and partners.
It provided financial support to businesses across the UK that:
- were losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak
- could benefit from £50,000 or less in finance.
A lender could provide a six-year term loan from £2,000 up to 25% of a business’ turnover. The maximum loan amount was £50,000.
The scheme gave the lender a full (100%) government-backed guarantee against the outstanding balance of the facility (both capital and interest).
The borrower always remained fully liable for the debt.
View the BBLS FAQs for more details on how it worked.