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Who does the scheme help?

The Bounce Back Loan scheme will help small and medium-sized businesses to borrow between £2,000 and £50,000. The government will guarantee 100% of the loan and there won’t be any fees or interest to pay for the first 12 months.

Loan terms will be up to 6 years. No repayments will be due during the first 12 months. The government will work with lenders to agree a low rate of interest for the remaining period of the loan.

The scheme will be delivered through a network of accredited lenders.


You can apply for a loan if your business:

  • is based in the UK; and
  • has been negatively affected by coronavirus.

Who cannot apply

The following businesses are not eligible to apply:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • state-funded primary and secondary schools

If you’re already claiming funding

You cannot apply if you’re already claiming under the Business Interruption Loan Scheme.

If you’ve already received a loan of up to £50,000 under Business Interruption Loan Scheme and would like to transfer it into the Bounce Back Loan scheme, you can arrange this with your lender until 4 November 2020.

How to apply

Full details of the scheme and guidance on how to apply can be found at the British Business Bank.

Flexibility to pay back loans

A new Pay as You Grow flexible repayment system has also been introduced to provide flexibility for firms repaying the Bounce Back Loan.

This includes extending the length of the loan from six years to ten, which will cut monthly repayments by nearly half. Interest only periods of up to six months and payment holidays will also be available to businesses.

The Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme and the Coronavirus Large Business Interruption Loan Scheme application will now be extended to the end of January 2021.

The Bounce Back Loan Scheme rules have also been adjusted to allow those businesses who have borrowed less than their maximum (i.e. less than 25% of their turnover) to top-up their existing loan. Businesses will be able to take-up this option from 9th November.