Coronavirus: Apply for the Bounce Back Loan scheme

News article

NOTE: The Bounce Back Loan scheme closed for applications on 31 March 2021.

This scheme enables smaller businesses to access finance more quickly during the coronavirus outbreak.

The Bounce Back Loan scheme helps small and medium-sized businesses to borrow from £2,000 up to 25 per cent of their turnover. The maximum loan available is £50,000.

The government guarantees 100 per cent of the loan and there won't be any fees or interest to pay for the first 12 months. After 12 months, the interest rate will be 2.5 per cent a year.

If you already have a Bounce Back Loan but borrowed less than you were entitled to, you can top up your existing loan to your maximum amount. You must request the top-up by 31 March 2021.

If you need a larger loan, you may be entitled to other coronavirus support.


You can apply for a loan if your business:

  • is based in the UK
  • was established before 1 March 2020
  • has been adversely affected by the coronavirus

If your business was classed as a business in difficulty on 31 December 2019, you'll need to confirm that you're complying with additional state aid restrictions.

Who cannot apply
Businesses from any sector can apply, except:

  • banks, insurers and reinsurers (but not insurance brokers)
  • public-sector bodies
  • state-funded primary and secondary schools

If you're already claiming funding
You cannot apply if you're already claiming under:

If you've already received a loan of up to £50,000 under one of these schemes you can transfer it into the Bounce Back Loan scheme. You have until 31 March 2021 to arrange this with your lender.

How long the loan is for

The length of the loan is six years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.

Before your first repayment is due, your lender will contact you about further options to:

  • extend the term of your loan to ten years
  • move to interest-only repayments for a period of six months (you can use this option up to three times)
  • pause your repayments for a period of six months (you can use this option once)

How to apply

There are 29 lenders participating in the scheme including many of the main retail banks. You should approach a suitable lender yourself via the lender's website.

The lender will ask you to fill in a short online application form and self-declare that you are eligible.

The lender will decide whether to offer you a loan or another type of finance and you’ll be responsible for repaying 100 per cent of the amount borrowed.

Find a lender

If the lender turns you down

If one lender turns you down, you can apply to other lenders in the scheme.

You may want to consider using a broker to find the right type of finance for your needs, or do your own research using the British Business Bank’s finance guide.

First published 27 April 2020