Bounce Back Loan Scheme (BBLS) FAQs

How much can I borrow?
£2,000 - £50,000 or 25% of 2019 Turnover (whichever is lower)

Who can apply?
Any UK trading business adversely affected by COVID-19 that was established on or before 1st March 2020 that was not in financial difficulty on 31st December 2019

Banks, building societies, insurance companies, public sector organisations, state-funded primary or secondary schools and individuals other than a sole trader or a partner acting on behalf of a partnership

What is a business in difficulty?

• Individuals or companies that have initiated insolvency proceedings
• Limited companies which have losses greater than half of their share capital in their last submitted accounts (does not apply to SMEs less than 3 years old) 
• Partnerships, limited partnerships or unlimited liability companies which have losses greater than half of their capital in their latest submitted accounts (again, does not apply to SMEs less than 3 years old)
• Where the undertaking has received rescue aid and has not yet reimbursed the loan or terminated the guarantee, or has received restructuring aid and is still subject to a restructuring plan

Does this affect my state allowance?
If the business self-declares as not being a “business in difficulty” on 31 December 2019, then any previous de minimis State aid does not impact a business’ eligibility for the Scheme. Any aid received under the Retail, Hospitality and Leisure Grant and any Business Interruption Payment received under the Coronavirus Business Interruption Loan Scheme will count towards their total State aid allowance under the Temporary Framework. Businesses are required to self-declare that, since 19 March 2019, they have not received more than £711,200 in State aid under the State Aid Temporary Framework (or £106,680 in the case of fisheries and aquaculture businesses, or £88,900 for agriculture businesses)

Do I need a personal guarantee?
No - the loan is 100% guaranteed by the government

How do I apply?
A simple online form and self declaration with an accredited lender

How soon will I receive the funds?
Funds will be in your bank within 24-48 hours

What's the terms of the loan?
6 years with no repayments for the first 12 months

How much will I pay?
The Interest rate is fixed at 2.5% for the duration of the loan

Can I repay early?
Yes - early repayment charges will not apply

What can I use the loan for?
The loan is for business use and must not used personally, you will be required to declare this to the lender

Can I apply for the Coronavirus Business Interruption Loan Scheme (CBILS) as well?
No - However, you can convert a CBILS in to a BBLS if you borrowed under £50,000 to benefit from the lower interest rate.

The contents of this article are referenced from the British Business Bank