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Bounce Back Loans: Replaced by ‘Growth Guarantee Scheme’
Applications for Bounce Back Loans closed in March 2021.
Register your interest for the Growth Guarantee Scheme instead
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Closed March 2021
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New Government-Backed Scheme Announced
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Apply for Growth Guarantee Scheme Today
Government-backed finance for small businesses
Bounce Back Loans: Ended March 2021
In response to the COVID-19 outbreak and the extensive economic disruption caused by the pandemic, the UK government issued several financial assistance packages to help businesses survive the loss in revenue and cashflow. These packages included loans, grants, and various schemes.
One such scheme was Bounce Back Loans. Introduced in Spring 2020, this initiative provided small and medium-sized enterprises (SMEs) with loans of up to £50,000. The government guaranteed these loans, offering low rates on the condition that the funds were used for business purposes.
During its operation, the Bounce Back Loan scheme supported over 1.47 million small businesses affected by the pandemic, providing nearly £45 billion in finance. Although the scheme closed in March 2021, it has been succeeded by the other government-backed funding schemes, the CBILS and RLS scheme, and the CURRENT SCHEME Growth Guarantee Scheme.
Bounce Back Loans (BBLS)
What was a Bounce Back Loan? (BBLS)
The Bounce Back Loan Scheme (BBLS) was a targeted initiative designed to provide immediate financial relief to small and medium-sized businesses affected by the COVID-19 pandemic.
The scheme included several benefits: the government covered interest and fees for the first year, and no repayments were required during the initial 12 months. Additionally, the government provided banks with 100% security in the event of non-repayment. Loans were offered at a low, fixed interest rate of 2.5% for a six-year term, and business directors were not required to submit personal guarantees.
Between May 2020 and May 2021, 1.56 million businesses were approved for finance through the BBLS, with the total lending amounting to approximately £47.4 billion.
Key features of the BBLS included:
- Loans range from £2,000 up to 25% of a business’s turnover, with a maximum cap of £50,000.
- A streamlined application process, minimising hurdles and ensuring straightforward access to funds.
- No set-up fees, reducing financial strain on already struggling businesses.
- Government covered the first 12 months of interest payments, alleviating immediate financial burdens.
- A full (100%) government-backed guarantee against the outstanding balance of the loan, providing reassurance to lenders and borrowers alike.
Is the Bounce Back Loan Still Available?
This scheme, along with CBILS and RLS, was specifically crafted to provide immediate financial support to small and micro businesses impacted by the COVID-19 pandemic, and as of March 31st 2021 is no longer available.
However, its legacy has continued within the business community. The intention to provide crucial financial assistance to businesses has been continued with RLS (closed June 2024), and now most recently with the Growth Guarantee Scheme: the latest iteration of Government-backed funding for small businesses.
Government-backed finance extended: Growth Guarantee Scheme Launched 1st July 2024
Missed Out? Introducing the Growth Guarantee Scheme
Am I Eligible for the Growth Guarantee Scheme?
The latest small business finance facility backed by the UK government is called the Growth Guarantee Scheme. Open to all businesses trading in the UK with turnovers up to £45 million, provided they are not currently in insolvency proceedings. Whether you’re a seasoned borrower or exploring government-backed finance for the first time, the GGS offers an opportunity for businesses to secure affordable financing tailored to their specific needs, with the added benefit of a 70% guarantee to the lender increasing security and lender appetite.
Learn More About GGS Loans
The GGS is a government-backed initiative designed to offer fixed and capped-rate loans to small businesses, providing easier access to finance for enterprises in need of a cashflow boost or seeking to invest in new equipment. One of the standout features of GGS is that your Principal Private Residence cannot be taken as security, offering additional peace of mind for borrowers.
Visit our GGS page to find out more.
If you’re ready to explore your options under the Growth Guarantee Scheme or want to learn more about how Portman can assist your business in securing the financing it needs, get in touch today. Our dedicated team is here to guide you through the process and help you realise your business’s full potential.
You can still enquire about government-backed funding
Bounce Back Loan FAQs
Can I borrow more money if I already have a Bounce Back Loan?
The Bounce Back Loan Scheme allowed eligible businesses to borrow up to £50,000, subject to certain criteria. However, you may explore other financing options, such as the Growth Guarantee Scheme, to meet your business’s financial needs. It’s advisable to consult with your lender or financial advisor to discuss your options and determine the best course of action for your business.
Is the Bounce Back Loan Scheme still available for new applications?
No, the BBLS closed to new applications on March 31, 2021. However, businesses that secured a BBLS loan before the deadline can continue to benefit from its terms and repayment structure.
General Enquiries
Do you offer seasonal payment terms?
Yes, Portman does offer seasonal payment terms. Many of our customers naturally experience high demand for their services during certain times of the year as well quieter periods during others. We tailor all finance agreements to the needs of each business, and lower payments can be arranged during periods when there is a predictable reduction in trade.
Do you provide finance outside the UK?
Unfortunately, Portman can only finance companies registered and operating in the UK.
How long will I be paying back the finance?
Terms are available between 2 and 6 years. Options available to you may be dependent on the circumstances of your business, but then the final choice is up to you.
Isn’t it cheaper just to go to a lender direct?
Whilst banks can offer different rates, they often reject certain type of purchase, businesses in different industries and have very strict lending criteria. At Portman we deal with a panel of over 40 lenders as well funding businesses with our own money. We have access to specialist lenders and specialist types of finance, giving a variety of options and a greater chance of success. Portman may have rates that are not available to a customer who goes direct and can also explore the whole lending market in one go, saving you time. We have access to specialist lenders that are not available to individuals and can even put together finance packages from multiple lenders. All of which gives you competitive rates, with a greater chance of acceptance.
