Overlay
Coronavirus support

Bounce Back
Loan Scheme

 

The Bounce Back Loan (BBL) scheme is a government initiative to support small and medium-sized businesses. The government provides banks like The Royal Bank of Scotland with a guarantee for 100% of the loan.

You will have to repay this loan in full.

Bounce Back Loan

Borrow from £2,000 up to £50,000 (up to a maximum of 25% of your turnover) 

Fixed 6 year loan term, with no early repayment fees if you wish to repay the loan early

Interest rate is 2.5% fixed

12 month capital repayment holiday is automatically applied at the start of the loan (this may mean you pay more interest over the term)

The government pays the fees and interest for the first 12 months

Personal guarantee is not required

Bounce Back Loan Top-Up

If you have borrowed less than 25% of the annual turnover you stated on your original Bounce Back Loan application form, you are eligible to apply for a Top-Up

The combined value of your original loan and Top-up cannot exceed 25% of your originally stated turnover, and is subject to an overall cap of £50,000. You may only apply for a Top-Up once

The minimum borrowing amount for a Top-Up is £1,000

An interest rate of 2.5% per annum applies on the Top-Up. This is the same interest rate which applies to your existing Bounce Back Loan

Government covers the interest on the Top-Up up to the date on which your original interest free period on your existing Bounce Back Loan expires (i.e. 12 months after the initial draw-down of the original loan amount)

No capital repayments are required up to the date on which your repayment holiday on your existing Bounce Back Loan expires (i.e. 12 months after the initial draw-down of the original loan amount)

The term of the Top-Up will expire on the same date as the term of your original Bounce Back Loan

Pay As You Grow

The Government has announced Pay As You Grow options for Bounce Back Loan borrowers to help businesses get back to regular trading. Pay As You Grow could give you more time and flexibility to pay back your loan.

Pay As You Grow options will be available to you once you start to repay your Bounce Back Loan, from 12 months after it was first approved.

Using these options won’t affect your credit score, though it may influence how we assess your creditworthiness in the future and your loan may cost you more overall. 

Find out more about your Pay As You Grow options.

How do I apply or Top-Up my existing Bounce Back Loan?

Apply online

Check your eligibility and start your application. You'll have first stage loan documents within 2 days.

Sign and submit

Review, sign and submit your loan documents online, which is quick and easy. Let us do our checks.

Receive funds

If your application is successful, we will aim to have funds in your account within 3 working days.

Eligibility criteria for the Bounce Back Loan Scheme

You may be eligible if:

You’re a UK resident with a business or registered charity based in the UK.

You can evidence that your business was established before 1 March 2020

You can certify that your business has been adversely impacted by coronavirus (COVID-19).

You're an existing Royal Bank business banking customer.

You won't be eligible if:

You already have a Coronavirus Large Business Interruption Loan or the Bank of England's Covid Corporate Financing Facility.

You’re a credit institution (falling within the remit of the Bank Recovery and Resolution Directive), public sector body, a state-funded primary or secondary school or an insurance company.

Your business is subject to collections or collective insolvency proceedings.

You did not start your application by 31 March 2021.

The Bounce Back Loan and Top-Up scheme is now closed

If you have started your application by 31 March 2021, you can expect your first stage loan documents within 2 days

Check the expiry date on your application form to ensure you complete and submit your application in full before the expiry

More questions about Bounce Back Loans?

Visit our Frequently Asked Questions to find further guidance and support.

Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy.

British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

Visit british-business-bank.co.uk.

More information on what you can expect from us as a lender during the life of your Bounce Back Loan, including any Top-Up amount

  1. What we have agreed to address

    We will monitor your repayment record during the life of your Bounce Back Loan and take action to help you where there are signs of actual or possible repayment difficulties.

    If we identify that you might be vulnerable, we will make appropriate adjustments to ensure that your circumstances are accommodated throughout the duration of your Bounce Back Loan.

    If you default under your Bounce Back Loan, we will give you a reasonable period to remedy any breach and we will not treat the default as an event of default if it is remedied within this period.

    We will not require you to pay any fees of any description (including on default) or any default interest (except if the Bounce Back Loan is not repaid when due we may continue to charge interest at 2.5% per annum until such time as it is repaid).

    We will give consideration to your information needs once you have a Bounce Back Loan with us and provide information to you in a way which is clear, fair and not misleading.

    We will provide you with information on your right to repay a Bounce Back Loan before your Bounce Back Loan is binding you.

    We will provide you with information on the risks of non-repayment of your Bounce Back Loan, including the impact on your credit file before your Bounce Back Loan is binding on you.

  2. What information we have agreed to provide

    1. Timely, clear and adequate information that will help you to understand that, if you fail to make payments under your Bounce Back Loan, the amount missed, what can be done to remedy, in what timescales, and the impact (if any) on your future repayments;
    2. if you default, we will give you information about any proposed action we might take in respect of your Bounce Back Loan, prior to taking such action;
    3. regular information about your Bounce Back Loan (on at least an annual basis) in the form of a statement setting out details of the payment transactions on the Bounce Back Loan during the period since such information was provided (or the Initial Drawdown Date, if no such information has been provided previously) and amounts outstanding under the Bounce Back Loan; and
    4. information on options available to you for help and assistance, including sources of free independent advice.
  3. Complaints and escalation

    We always try to give you the best possible service. If, however, you want to make a formal complaint to us, the easiest way is online but there are also other ways. For more information and to make a complaint online, visit our complaints page.

     

    You can also escalate to The Financial Ombudsman Service where eligible. The Financial Ombudsman is an independent organisation. They sort out complaints consumers and certain financial businesses haven’t been able to settle themselves. If for some reason you haven’t been able to resolve a complaint within 8 weeks, or if you are not satisfied with the resolution then you can refer your complaint to the Financial Ombudsman Service. If you receive a final response letter from us, and still want to contact the Financial Ombudsman Service, you will need to do this within 6 months of receiving a final response letter from us. To find out more about the service visit: financial-ombudsman.org.uk

More support for your business needs

Loan repayment holiday to give your business a bit of breathing space

If you have a business loan with us, you can request a loan repayment holiday through your Relationship Manager or apply online.

Business overdraft could support your cashflow when you need it most

An arranged overdraft is a flexible, short-term safety net. Security may be required. Product fees may apply. Over 18s only. Subject to status, business use only.

View our range of loans and finance options available for businesses

See our range of loans and finance options. From flexible everyday lending to innovative, alternative funding solutions. We could help you move your business forwards.

Something else we can help you with?