Business Recover Loan Scheme (BBLS)

CLOSED – RECOVER LOAN SCHEME NOW OPEN

Application deadlines for Government Loan Schemes are extended until no more March 2021.

Bounce Back Loans can be extended from Six to ten years. Interest-only periods of up to 6 months and payment holidays may also be available.

Coronavirus Recover Loan – Open 4th May 2021

The Recover Loan scheme can help small and medium-sized businesses to borrow between lb2,000 and lb50,000

• The government guarantees 100% from the loan
• No fees or interest to pay for the first Twelve months.
• Loan terms is going to be as much as 6 years.
• No repayments will be due throughout the first Twelve months.
• After year 1 – interest rate for this loan at 2.5% per annum and also the repayment term is bound at six years.
• Early repayment is permitted at any stage, without early repayment fees.

The government will work with lenders to agree a minimal rate of interest for that remaining period of the loan.

You can apply for a loan in case your business:

• is located in the UK
• has been negatively impacted by coronavirus
• was not an 'undertaking in difficulty' on 31 December 2021
• business was trading on/before 01/03/2021

The following businesses are not eligible to apply:

• banks, insurers and reinsurers (although not insurance brokers)
• public-sector bodies
• further-education establishments, if they are grant-funded
• state-funded primary and secondary schools

If you've already received a loan as high as lb50,000 under CBILS and would like to transfer it into the Bounce Back Loan scheme, you are able to arrange this with your lender until 4 November 2021.

How will i apply?

The Scheme is going to be available with the British Business Bank's accredited lenders. A summary of lenders can be obtained here.

Businesses is going to be necessary to fill in a short online application form and self-declare that they are eligible for the Scheme.

• Approach own bank first (apply online)
• If rejected, you can approach other accredited providers

What checks will I be subject to?

• Required to self-declare they meet the eligibility criteria for the Scheme.
• Eligible companies will be subject to standard customer fraud, Anti-Money Laundering (AML) and Know Your Customer (KYC) checks.

What happens if I find I'm can not repay the borrowed funds?

• Talk towards the lender if you're experiencing financial difficulties
• There is going to be standard procedures put in place
• No personal guarentee is required

For sole traders or small partnerships, who often risk their personal belongings when borrowing, the the Recover Loan Scheme means no recovery action can be taken over a principal private residence or a primary personal vehicle.

For FAQs around the loan, click here