How to apply for a Business Bounce Back Loan (BBBL)

The Business Bounce Back Loan scheme, designed to support those businesses not eligible for the CBILS loan scheme, is now live.

The Business Bounce Back Loan scheme, designed to support those businesses not eligible for the CBILS loan scheme, is now live.

The Government-backed loan has been developed on the premise to inject much-needed borrowings into small and medium-sized businesses without them having to go through the usual credit checks.

The outline of the loans is as follows:

  • The Bounce Back Loan scheme helps small and medium-sized businesses to borrow between £2,000 and £50,000 (it is capped at 25% of turnover).
  • The government guarantees 100% of the loan and there will not be any fees or interest to pay for the first 12 months.
  • Loan terms will be up to 6 years, with no repayments due during the first 12 months. The interest rate for the remaining period of the loan has been set at 2.5%.
  • The Bounce Back Loan scheme will be delivered through a network of accredited lenders (outlined towards the bottom of this update).

To help you navigate the application process, we have put together some handy tips.

Getting started

Before you get started,  find an accredited lender (we've provided a detailed list towards the end of this update). Banks offering the scheme are requesting that applications for the loans are undertaken in the first instance via their website in which you will be required to complete a short application form which self certifies that your business is eligible for a loan under BBLS.

If eligible you will need to complete the Banks Anti-Money laundering, fraud and Know Your Client checks, upon which the lender makes a decision.

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.
  • Aas 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).

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

Interaction between BBLS and the Coronavirus Business Interruption Loan Scheme (CBILS)

Businesses will be able to borrow up to £50,000 under the BBLS, capped at 25% of turnover. In order to ensure that businesses have a clear understanding of the support available to them under the loan guarantee schemes, the minimum facility size for term loans and overdrafts under CBILS will increase to £50,001 to avoid any risk of confusion or overlap.

Any customer with a CBILS loan or overdraft of £50,000 or less will be able to switch that facility to a BBLS loan should they choose to do so over the next few months. This change to the minimum facility size will not apply to asset finance and invoice finance CBILS facilities.

List of accredited lenders

Nat West

HSBC

Barclays

Lloyds

Santander

Yorkshire Bank

Royal Bank of Scotland

If you require assistance in applying for a BBBL, contact us and we will do our best to help. If you do apply for a Bounce Back Loan please let us know and keep us updated on progress.

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