Bounce Back Loan Scheme (2020-21)

Updated 1 April 2021

Applications for the Bounce Back Loan Scheme closed on 31 March 2021, but we’ve kept this page for information purposes.

Among the range of UK Government measures to help protect businesses and individuals from the economic impact of coronavirus, the latest to be announced is the Bounce Back Loan Scheme (BBLS).

The scheme was launched on Monday 4 May 2020. Key points are:

  • You can borrow between £2,000 and £50,000, subject to borrowing no more than 25% of turnover
  • The government guarantees the whole loan
  • There are no fees or interest for the first 12 months. After that a rate of interest of 2.5% applies for the remaining period of the loan
  • Loans can be for up to 10 years with no repayments for the first 12 months
  • The scheme is run through ‘a network of accredited lenders’, with over 20 banks confirmed
  • Early repayments are allowed without any early repayment fees
  • ‘Top-ups’ to existing Bounce Back Loans are possible if you originally borrowed less than the maximum amount available

To be eligible for a Bounce Back Loan, the conditions are that your business:

  1. Is UK-based
  2. Has been negatively affected by the current situation
  3. Wasn’t an ‘undertaking in difficulty’ at 31 December 2019, which for businesses more than three years old means accumulated losses cannot exceed 50% of subscribed share capital. Businesses in difficulty may still be eligible subject to State Aid rules
  4. Isn’t already claiming under the Coronavirus Business Interruption Loan Scheme (CBILS). If you’ve already received a loan of up to £50,000 under CBILS, you can arrange to transfer it to BBLS with your lender until 4 November 2020

Accredited lenders are administered by the British Business Bank, which has information about BBLS here.

BBLS applications closed on 31 March 2021.

Pay as you Grow

Announced as part of the Winter Economy Plan: all businesses that borrowed under BBLS will be given the option to repay their loan over a period of up to 10 years.

UK businesses will also have the option to move temporarily to interest-only payments for periods of up to six months (an option which they can use up to three times), or to pause their repayments entirely for up to six months (an option they can use once and only after having made six payments).

Bounce Back Loan top-ups

As of 10 November 2020, BBLS lenders can offer businesses a ‘top-up’ to their existing Bounce Back Loan if they originally borrowed less than the maximum amount available to them.

If you’re a borrower, the top-ups are only available from your existing BBLS lender. You can apply for a top-up that is for the lesser of £50,000 or 25% of the annual turnover the borrower certified in your original successful BBLS application form, minus the value of your original loan.

Each borrower may apply for one top-up. The minimum amount is £1,000.

For more information about the various coronavirus support schemes and how your business could benefit from them, please get in touch with your usual BKL contact or use our enquiry form.



Sam Inkersole

In 2022, Sam won the Taxation’s Rising Star award at the Taxation Awards in and was named in the Accountancy Age 35 Under 35.

Jon Wedge

While Jon’s client work focuses on the financial services sector, he also oversees the firm’s assurance service, as well as supporting the trainees following in his footsteps.


Elana joined us in 2017 as an ACA trainee, after graduating from Durham University where she had studied languages. She is now a manager in our assurance team.


By submitting this form, the data provided will be used to perform your request according to our privacy policy.