Archive, April 2020: The Bounce Back Loan Scheme closed to new applications on 31 March 2021. The government guarantee protected lenders; borrowers remained responsible for the debt. Existing borrowers can find repayment information from the British Business Bank and their lender.

On 27 April 2020, Chancellor Rishi Sunak announced the Bounce Back Loan Scheme to support small businesses affected by the coronavirus pandemic. It opened through accredited lenders on 4 May 2020.

The scheme offered eligible businesses loans from £2,000 up to 25% of turnover, capped at £50,000. The government guaranteed the loan to the lender and paid the first 12 months’ interest and fees; no repayments were due during that period. The annual interest rate thereafter was 2.5%, and the original loan term was six years. See the government’s archived scheme guidance.

Later, Pay As You Grow options included extending the loan term to 10 years, taking one six-month repayment holiday, or making interest-only payments for six months up to three times. These options increase the total amount owed; borrowers should discuss their circumstances with their lender.

At the April 2020 announcement, the government said £6 billion had been awarded in business grants and the job retention scheme was supporting 4 million jobs.

The Chancellor of the Exchequer, Rishi Sunak, said at the time:

“Our smallest businesses are the backbone of our economy and play a vital role in their communities. This new rapid loan scheme will help ensure they get the finance they need quickly to help survive this crisis.”

“This is in addition to business grants, tax deferrals, and the job retention scheme, which are already helping to support hundreds of thousands of small businesses.”

For current options, see government business finance and support.