Bounce Back Loan Scheme | Loans For SMEs

Bounce Back Loan Scheme (BBLS) borrowers: The Bounce Back Loan Scheme (BBLS) is now closed to new applications, including applications for top-ups.

Our Bounce Back Loan Scheme (BBLS) came with

Straightforward application with quick access to funds

Government covers the first 12 months of interest (this means you pay 0% for the first year)

Interest rate of 2.5% p.a. fixed for the full length of the loan

Loan amount from £2,000 up to £50,000 or 25% of your annual turnover, whichever is lower

No repayments required for the first 12 months

6-year loan with no early repayment charges

What the eligibility was

You have a Santander or Cater Allen current account opened before March 01 2020
You’re a UK-based business that has been impacted by Covid-19
You haven’t already applied for or received a Bounce Back Loan (BBL) for your business, or for another business in your group (35 KB)
Full eligibility details are included within the online application process
You don’t already have a CBILS, CLBILS or CCFF unless you’re refinancing it in full by taking this BBLS. We'll contact you afterwards if this applies to you
You are not a Relevant Financial Institution (RFI), nor do you intend to become an RFI (as defined within Article 2 of the Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014)

Repayment example

Representative 2.5% APR
Loan amount £25,000
Interest rate 2.5% (fixed) p.a.
Term 72 months
First monthly repayment £469.75
Total amount repayable £27,215.81

The total amount repayable over the term of the loan includes the Business Interruption Payment

Things to remember

The maximum loan size under BBLS is £50,000.
Under the rules of BBLS, personal guarantees to support a company’s BBLS loan obligations (if you are applying on behalf of a company) will not be taken by us.

To apply for a loan from the Bounce Back Loan Scheme (BBLS) you needed the following information:

Company name, address and company registration number (where applicable)
Turnover for 2019 (estimates can be used)
Santander or Cater Allen current account, with a sort code and account number, which you use to manage your business

If you applied for a Bounce Back Loan as a sole trader with a Santander personal current account which you use for your business, you’ll have needed to provide us with a copy of your full 2018/19 self-assessment tax return. If your business hadn’t been trading long enough to be able to provide a tax return we could accept alternative documents such as a third party invoice which had been paid from your account within the last 60 days, addressed to you and your business or regulatory licence.

You couldn't use your personal current account to apply for a Bounce Back Loan if you’re a limited company or partnership.

Applications from customers who opened their personal current account after 1 March 2020, or who run their business transactions through an account with another provider were not accepted.

How much will it cost:

You will not need to make any payments for the first 12 months, however, you can repay the loan at any time.

The table below shows illustrative costs for a Bounce Back Loan.

Loan amount	£5,000	£10,000	£15,000	£20,000	£30,000	£40,000	£50,000
First monthly payment (at month 13)	£93.95	£187.90	£281.85	£375.80	£563.70	£751.60	£939.49
Total amount repayable over the term of the loan	£5,443.18	£10,886.32	£16,329.50	£21,772.71	£32,658.98	£43,545.27	£54,431.60

The total amount repayable over the term of the loan includes the Business Interruption Payment.

Your monthly repayments will reduce over time as you repay the capital balance.

A Business Interruption Payment (BIP) is the amount the government pays in the first year to cover your interest.

Loan amount	£5,000	£10,000	£15,000	£20,000	£30,000	£40,000	£50,000
Business Interruption Payment (BIP)	£125.01	£249.99	£375.00	£500.05	£749.99	£999.98	£1,249.97

Fees:

There are no arrangement fees for setting up a Bounce Back Loan.

Early repayment charges don’t apply.

Important information

The document below contains important information about the Bounce Back Loan Scheme. You may want to save or print them so you can refer to them in the future.

Bounce Back Loan Scheme Key Facts Document (pdf) (831 KB)

To view these documents, you may need to download Adobe Reader

What is the Bounce Back Loan Scheme (BBLS)?

The Bounce Back Loan Scheme (BBLS) supported businesses by providing access to a source of alternative finance if you have been impacted by the coronavirus outbreak. The BBLS was designed to help you in circumstances where you wouldn’t normally have met our eligibility criteria.

Is BBLS backed by the government?

The BBLS is a government backed guarantee scheme, which allowed you to borrow money in these circumstances. The guarantee provided Santander with a full guarantee, should you fail to repay the loan following a demand by Santander. The provision by the UK Government of this support does not imply any endorsement or warranty of Santander from the Secretary of State for Business, Energy and Industrial Strategy or the UK Government.

You will always remain responsible for repayment of the whole (ie.100%) of the debt

What sort of businesses were eligible?

Almost all business sectors were eligible for BBLS. The following trades and organisations weren't eligible to apply: banks, building societies and insurers (but not insurance brokers); or the public sector including state funded primary and secondary schools.

What does ‘group’ mean in relation to BBLS?

Under the current guidance from the British Business Bank, “A customer may apply for one loan for each separate business, unless the businesses are a group as defined by having a holding company.” Please refer to our Business Group Guidance Sheet (35 KB) for more information.

Can I request a top up or increase my Bounce Back Loan amount?

The Bounce Back Loan Scheme is now closed to new applications, including applications for top ups. Before 31 March 2021, if your business had already opened a Bounce Back Loan with us and didn’t borrow the full amount available (either £50,000 or 25% of the annual turnover as stated in the original application, which is lower), your business may have been eligible to top up its existing Bounce Back Loan.

Please refer to our ‘Top up my existing Bounce Back Loan’ section for more information.

When will I start repaying my loan?

The Government will be covering interest payments for the first 12 months.

You won’t need to make a monthly payment until month 13, at which point it will be fixed at 2.5% per annum for the rest of the life of the loan (another 5 years). Your monthly repayments will be made up of capital and interest payable.

You can repay the loan at any time.

How quickly will I get my loan?

For most customers we’ll send you an email (usually within 24hrs) containing documents you need to sign and return to us digitally. Please ensure that you check your junk or spam folders. Once we’ve received your signed documents we’ll send your loan money to your Santander account as soon as we've complete our final checks.

How will the BBLS scheme affect my existing loan?

If you had a CBILS loan with us, you would’ve needed to repay your existing CBILS loan in full in order to take out a BBL loan.

If you have an existing Santander Business loan there will be no changes to this and the BBLS loan will be a separate loan for the additional amount that you apply for.

What are the consequences if I do not keep up with repayments?

If you miss a BBLS Loan payment we will record the details with a credit reference agency which could damage your credit rating and may make it more difficult for you to obtain credit in the future. Also, failure to make your BBLS Loan payments when they fall due may result in legal proceedings being taken against you by us, which may result in us taking enforcement action against you in order to recover the monies that are owed.

Can I apply for a Bounce Back Loan if I hold a Santander personal current account and not a business current account?

The Bounce Back Loan Scheme is now closed to new applications. Before 31 March 2021, you were able to apply for a Bounce Back Loan with a Santander personal current account that is used for business. You would have needed to provide us a copy of your full 2018/2019 self assessment tax return.
If you business hadn’t been trading long enough to be able to provide a 2018/19 tax return, we could accept other documents such as:

Proof of trading address.
Proof of the nature of your business such as:
- A third party invoice which has been paid from your account within the last 60 days addressed to you and your business
- A current insurance schedule certificate related to your business or regulatory licence e.g. taxi or Food Standards Agency registration document.

For applications using a Santander personal current account we would also have needed additional information from you as part of the application process, this may mean that it took longer than normal to process your application.

Can I apply for a Bounce Back Loan if I am a Cater Allen business customer?

The Bounce Back Loan Scheme is now closed to new applications. Before 31 March 2021, Cater Allen business customers were able to apply for a Bounce Back Loan with Santander.

What other forms of government support are available for businesses?

The Government has launched a range of support measures to help support businesses through the disruption caused by coronavirus including;

A statutory sick pay relief package for small businesses.
A 12-month business rates holiday for all retail, hospitality and leisure businesses in England.
Small business grant funding of £10,000 for all businesses in receipt of small business rate relief or rural rate relief; and
Grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
Claim for wages through the Coronavirus Job Retention Scheme

Please refer to a summary of Government support (217 KB) or the Government support website for full details.

The Bounce Bank Loan Scheme (BBLS) is 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 (BEIS). 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 BBLS and the list of participating lenders can be found on the British Business Bank website: www.british-business-bank.co.uk

Making a complaint

Take a look at our information on how to complain, including details of our complaints handling procedure and your right to complain to the Financial Ombudsman Service.

BBLS Top-up eligibility

The Bounce Back Loan Scheme is now closed to new applications, including applications for top ups. Before 31 March 2021, if your business had already opened a Bounce Back Loan with us and didn’t borrow the full amount available, your business may have been eligible to top up its existing Bounce Back Loan.

Your business may have been eligible for a BBL Top-up if it met all of the following criteria. To have been eligible for a BBL Top-up, you must:

Have an existing Bounce Back Loan open with Santander.
Have a Santander Business, Personal or Cater Allen account that is open.
Have not borrowed the full amount available (either £50,000 or 25% of the annual turnover that you provided in the original application, whichever is lower). The rules of BBLS state that under no circumstances can you amend or increase the turnover that you stated on your original application.
Have not already applied for a BBLS Top-up. (Your business can only apply for a BBLS Top-up once).
Your business wants to apply for a BBLS Top-up of at least £1,000 (if this amount is available to your business). Applications must be made for multiples of £1,000.
Be the same type of entity as it was when your Bounce Back Loan was first taken out and your business has not changed how you trade.

If your business has already made a partial repayment of your BBL the total amount of the BBLS Top-up and original loan can’t exceed the maximum of £50,000 or 25% of the annual turnover that you provided in your original application, whichever is lower).

My turnover has increased since I submitted my original BBLS application, or I inputted my turnover incorrectly on my original BBLS application. Can I update it?

No, the rules of BBLS state that under no circumstances can you amend or increase the turnover that you stated on your original BBLS application.

When will I start making repayments on my BBLS Top-up?

As part of the BBLS Top-up, the Government is offering a Business Interruption Payment which will cover your interest payments up until the expiry of the interest-free period on your original Bounce Back Loan (that is,12 months from the initial draw-down date of your original Bounce Back Loan).
For example, if you opened your original BBL on 1 June 2020, and you open a BBLS Top-up on 1 December 2020, you’ll begin to make repayments for the total amount of Bounce Back Loan (sum of the original BBL plus BBLS Top-up) you’ve taken from 1 June 2021.

For further information on repaying your Bounce Back Loan, please visit our dedicated webpage

You can repay your loan at any time.

Can I defer my BBLS Top-up repayments for another 12 months?

No, once you’ve opened a BBLS Top-up, you’ll be required to make your repayments at the same time as your Original BBL repayments are due, via a single monthly Direct Debit.

For further information on repaying your Bounce Back Loan, please visit our dedicated webpage

How do I apply for a BBLS Top-up?

The Bounce Back Loan Scheme is now closed to new applications, including applications for top ups.

Are the terms and rate of a BBLS Top-up the same as my original loan?

Yes, all details and terms of the loan, including interest and repayment dates, will be exactly the same as your original BBL. A single Direct Debit will be taken after 12 months to collect total payments due.

Can I apply for a BBLS Top-up if I’ve closed my Santander account since opening my original BBL?

The Bounce Back Loan Scheme is now closed to new applications, including applications for top ups. Before 31 March 2021, your business must have had a Santander or Cater Allen account that was open to be eligible for a top up.

Can I apply for a top up with Santander if I took out my original BBL with another lender?

The Bounce Back Loan Scheme is now closed to new applications, including applications for top ups. Before 31st March 2021, you must have taken your original BBL with Santander to have been eligible for a top up.

The scheme offered businesses a government-backed lending facility if they met the Bounce Back Loan Scheme eligibility criteria.

You could only apply for one Bounce Back Loan per group. For information on Groups, please take a look at the Business Group Guidance Sheet

You may wish to keep a copy of the Business in Difficulty Guidance Questionnaire to hand if you want to check if your business is in difficulty. Please note this does not form part of the application process.

Business in Difficulty Guidance Questionnaire

Important Information including Key Facts

We are expected to do the following in respect of your BBLS Loan (Loan):

Monitor repayments you make during the life of the Loan and take appropriate action to help you where there are signs of actual or possible repayment difficulties
Make appropriate adjustments if we identify you as vulnerable or we have reason to believe you may be vulnerable in order to ensure your circumstances are accommodated throughout the duration of the Loan
If you default under the BBLS Loan, give you a reasonable period to remedy any breach and will not treat the same as an event of default if it is remedied by you within this period.
Not require you to pay any fees of any description (including on default) or any default interest except we may continue to charge interest at 2.5% per annum if the Loan is not repaid when due until such time as it is repaid.
Pay due regard to your information needs and provide information in a way which is clear, fair and not misleading.

We are to provide you with the following information in relation to your Loan during its term:

Timely, clear and adequate information that enables you to understand that, where you fail to make payments under your Loan with us, the amount missed, what can be done to remedy, in what timescales, and the impact (if any) on future repayments;
Information about any proposed action we may take in respect of the Loan (upon any default by you), prior to taking such action;
Regular information about the Loan (on at least an annual basis) in the form of a statement setting out details of the payment transactions in respect of your Loan during the period since such information was provided (or the date the Loan was advanced to you, if no such information has been provided previously) and amounts outstanding under your Loan; and
Information on options available to you for help and assistance, including sources of free independent advice.

Please note the above is for information purposes only and will not be deemed incorporated into the Loan (nor provide you with any additional rights under it).

Important information is included within documents which can be accessed via the links below. You should print or save copies of these documents for further reference and for your records. If you have any questions regarding these or require further information, please contact us.

All lending is subject to status, availability, our lending criteria and the BBLS eligibility criteria.

The right to decline any application is reserved. BBLS Loans are not subject to the usual consumer protections that apply to business lending and as such you will not have the benefit of the protection and remedies that would otherwise be available to you under the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974.

It’s important that you read and understand the information in the Bounce Back Loans Key Facts Document and Bounce Back Loan Scheme Data Protection Statement.

Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit british-business-bank.co.uk

Bounce Back Loan Scheme (BBLS)