The Bounce Back Loan Scheme is launched

May 4 2020

The Bounce Back Loan Scheme (BBLS) has gone live this morning with fast-track funding support for smaller businesses. A number of high street banks are accepting applications directly via their websites, so to help speed things along we’ve provided direct links to these below. 

Key features of BBLS

• Apply for 25% of revenue up to a maximum of £50,000 (minimum £2000)
• Simple online application form
• If you’ve already taken out a CBIL up to £50,000, you can apply to switchover the BBLS
• The loans are backed by 100% government guarantees
• The government will pay the interest for the first 12 months and no capital repayments will be made during this time
• BBLS are for up to 6 years 
• There will be no early repayment fees
• There will be a flat rate of 2.5% interest following the initial 12-month interest free period

Who’s eligible

The Scheme is open to most businesses (regardless of revenue) who meet the eligibility criteria and who were established on or before 1 March 2020. A business is required to declare, amongst other things, that:

• it’s UK-based in its business activity, and established by 1 March 2020
• it’s been adversely impacted by the Coronavirus (COVID-19)
• it’s not currently using a government-backed Coronavirus Loan Scheme (unless using BBLS to refinance a whole facility)
• it’s not in bankruptcy, liquidation or undergoing debt restructuring
• it’s not a bank, building society, insurance company, public sector organisation, state-funded primary or secondary school, or an individual other than a sole trader or a partner acting on behalf of a partnership.
• it wasn’t a “business in difficulty” on 31 December 2019
• it derives more than 50% of its income (together with that of any member of any group of which it is a part) from its trading activity
• it will use the loan only to provide economic benefit to the business, and not for personal purposes.

How to apply

A standard, simple form will be used by all lenders offering loans under the BBLS. The majority of lenders are taking applications directly via their websites – see links below. 

The team at Swoop is currently updating all of the BBLS product pages so that if your bank offers BBLS, you can register with us and link directly to your bank’s application page. 

Next steps

Once you have applied for a BBL via your bank, Swoop can work with you to look at alternative or additional funding solutions, as well as ways of saving costs.

Should your bank not currently offer BBLS, Swoop can help you source funding from other providers and offer alternative solutions. In some instances, you may also be able to switch to a BBLS-accredited bank, and then apply directly for a BBL – Swoop can help with this process.

Here are the links to the Bounce Back Loan Scheme application forms:

• Barclays Bank
• Lloyds Bank
• RBS
• HSBC
• Natwest
• Santander
• Clydesdale
• Danske Bank
• Ulster Bank

If you require more than £50,000 you may wish to consider a CBILS or another solution. Register here for access to a range of funding solutions.