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BBLS is coming to an end

Updated: 24 September 2020

Update 24/9/20: 

The Government has now announced an extension of the Bounce Back Loan Scheme (BBLS). The deadline to apply has been extended to 30th November 2020, giving businesses even more time to apply. Here, we take a brief look at what BBLS is and how you can prepare for it.

If you’re looking for information about the end of the Coronavirus Business Interruption Loan Scheme (CBILS) click here

What is the Bounce Back Loan Scheme (BBLS)?

Provided through the British Business Bank and a group of accredited providers, the Bounce Back Loan Scheme (BBLS) focuses on providing financial support to microbusinesses and SMEs adversely affected by coronavirus. Through the scheme, businesses can apply for a loan of up to 25% of their annual turnover, up to a maximum of £50,000.

BBLS loans are set at a fixed interest rate of 2.5% per annum. The Government covers the first 12 months of interest payments, and borrowers are not required to make any repayments for the first year.

As an accredited provider under the scheme, we can offer our service to our existing customers:

  • Borrow £2,000 to £50,000
  • Fixed rate of 2.5% per year
  • Fixed 6 year terms
  • Nothing to pay for 12 months
  • No upfront or early settlement fee
  • Fast decisions

You can apply for a Bounce Back Loan with Funding Circle if your business:

  • has an existing loan with Funding Circle
  • is a limited company based in the UK
  • has been negatively affected by coronavirus
  • is not in bankruptcy, liquidation or undergoing debt restructuring

Full details can be found at www.british-business-bank.co.uk/BBLS.

When will BBLS end?

BBLS has been extended and the deadline for new applications is now 30th November 2020. Businesses will be able to start an application for finance until the end of day on this date.

Will BBLS be extended?

On the 24th September, BBLS was extended by the Chancellor, allowing businesses to apply for the scheme up to the end of November 2020. In addition, the Government also announced that it is working to provide a new government guaranteed loan scheme in January 2021. Please check gov.uk for the most up-to-date information.

Is there a deadline to apply for a BBLS loan with Funding Circle?

If you want to apply for a BBLS loan through Funding Circle, you’ll need to have started your application before the end of the day on the 30th November 2020.

How should I prepare for the end of BBLS?

If you still haven’t taken out a CBILS or BBLS loan, but are concerned about your current or future cash flow, you might want to consider taking out a BBLS loan. As a Government loan scheme designed specifically to help businesses affected by coronavirus, it has features that might not be available for most business loans. 

These include a low, fixed interest rate at 2.5% per year, no fees and no repayments for 12 months. The Government also pays your interest payments for the first 12 months, so if you pay back your loan in full within a year, it won’t have cost you anything.

For those looking to borrow more than £50,000, you might want to consider a Coronavirus Business Interruption Loan Scheme (CBILS) loan instead. You can find more information about this scheme here.

What happens if I miss the deadline for BBLS?

If you miss the deadline, you won’t be able to apply for a BBLS loan. The deadline to apply for the Coronavirus Business Interruption Loan Scheme (CBILS) has also been extended to 30th November 2020. The Government is working to provide a new government guarantee scheme in January 2021, but details of this haven’t been released. Please check gov.uk for the most up-to-date information.

It’s important to remember that when taking a loan your business is liable for the full loan amount. The CBIL and BBL schemes provide a guarantee to the lender, not to the business.

The Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) are managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and Industrial Strategy. The provision of CBILS or BBLS should not be construed as an endorsement or warranty of Funding Circle by the British Business Bank, or the government of the United Kingdom. British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on CBILS and BBLS and the list of participating CBILS and BBLS lenders can be found on the British Business Bank website.

All information is correct at time of publishing. While we want to help as much as we can, the information and documents found here are provided solely for informational purposes and should not be considered financial or legal advice. To the extent permitted by law, Funding Circle does not accept any liability for any loss or damage which may arise directly or indirectly from the use of, or reliance on, the information contained here.If you have any questions, please speak to your professional adviser or seek independent legal advice.

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