Bounce Back Loan Scheme (BBLS) – New options available
The scheme helps small and medium-sized businesses to borrow between £2,000 and £50,000, up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan and there will not be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
The deadline for applying has been extended to 31 January 2021.
You can request to top up
If you already have a Bounce Back Loan but borrowed less than you were entitled to, from 10 November 2020 you can top up your existing loan to your maximum amount. You must request the top-up by 31 January 2021.
Transfer to a Bounce Back Scheme
If you have already received a loan of up to £50,000 under:
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Large Business Interruption Loan Scheme (CLBILS)
- COVID-19 Corporate Financing Facility
you can transfer it into a Bounce Back Loan scheme. You have until 31 January 2021 to arrange this with your lender.
How long the loan is for and option available
The length of the loan is 6 years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.
Before your first repayment is due, your lender will contact you about further options to:
- extend the term of your loan to 10 years
- move to interest-only repayments for a period of 6 months (you can use this option up to 3 times)
- pause your repayments for a period of 6 months if you have already made at least 6 repayments (you can use this option once)
We are ourselves issuing regular updates via our website and e-mail cannons. If you are not receiving these and would like to be added to the list please e-mail [email protected] with the subject “Add me to your COVID-19 e-mails”.