Bounce Back and CBILS Loan Schemes closed and replaced by new Recovery Loan Scheme

Please note that as of 31 March the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) have closed and have been replaced by the new Recovery Loan Scheme.

Read our latest information on the new Business Recovery Loan.

CBILS information

Read further information on the CBILS scheme.

Bounce Back Loan Scheme

Please note the Bounce Back Loan Scheme ended on 31 March 2021.

• There's now the option to 'top up' your Bounce Back Loan. This is applicable to businesses that haven't already borrowed the maximum amount permitted under the scheme (ie, 25% of total turnover). This option can only be used once, and it should be available to businesses from the week commencing 9 November. More details are expected to follow shortly.
• No interest will be charged and no repayments will need to be made in the first 12 months.
• After 12 months, all banks will charge a fixed 2.5% annual interest.
• You can repay the loan early without penalty or with some banks you can part-repay or overpay.
• The loans can now last for 10 years i.e. a year interest-free and the rest at 2.5%. However, you can repay at any time without paying a fee, providing flexibility – and the sooner you repay once interest is charged, the smaller the overall cost.
• Payment holiday and/or interest-only periods of up to six months. This includes the option to:
• Move to interest-only payments temporarily up to three times, with each interest-only period lasting up to six months, and/or
• Take one payment holiday over the length of the loan, pausing repayments for up to six months. This option can only be used once you've made at least six payments (whether capital and interest or interest only). 
• Your business must have been established before 1 March 2020. It must also still be trading as a going concern at the point of application (temporary cessation due to coronavirus doesn't matter) – and the reason for any issues must be due to coronavirus.
• Credit ratings (business or personal) won't affect your eligibility. You don't need to prove the viability of your business.
• The loan will likely go on your business credit report, but not on your personal one (though banks may do 'soft' credit checks on both).
• Bounce back loans DON'T affect your eligibility for other Government personal support i.e. you can still apply for a bounce back loan and get the SEISS support grants.