The Bounce Back Loan Scheme (BBLS) is a government-backed scheme, delivered by British Business Bank, which offers financial support for small and micro businesses that have been affected by the ongoing Coronavirus pandemic. It provides financial support to businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the COVID-19 outbreak and that can benefit from £50,000 or less in finance.
The scheme provides lenders with a 100% government-backed guarantee and can provide loans from £2k up to 25% of a business’ turnover of up to £50k and is designed to support small businesses who have been affected by the Coronavirus pandemic.
As an accredited lender of British Business Bank, Skipton Business Finance can offer the loan alongside an Invoice Finance facility.
How Much Can I Borrow?Businesses can borrow a maximum of £50,000 through the Bounce Back Loan. The loans provided will be from £2,000 up to 25% of a business’ turnover or £50,000, whichever is lower.
Am I Eligible?
The Bounce Back Loan Scheme is designed for small and micro businesses in all sectors and Skipton Business Finance will consider businesses who:
- Are UK-based and trade Business-to-Business (B2B) - i.e. not direct to consumers
- Are looking for a BBLS loan alongside an Invoice Finance facility
The scheme is available for businesses that have been affected by the Coronavirus pandemic and that were not a business in difficulty at 31 December 2019. Applicants of this scheme cannot be using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF).
Can Skipton Business Finance provide a standalone Bounce Back Loan?
Unfortunately, Skipton Business Finance cannot offer the BBL scheme as a standalone loan. We can only offer the scheme alongside an Invoice Finance facility.
What is the maximum term of the Bounce Back Loan (BBL) Scheme?
The scheme allows business to access a loan with a term of 6 years.
- Skipton Business Finance will not charge you any fees with this loan or any default interest (however if a payment is missed, you will continue to owe interest at 2.5% per annum on the outstanding amount of the loan).
Paying the loan early:
- You will be able to repay all, or part, of the loan early and you will not be charged any fees for making an early payment.
If you are in difficulty:
We will monitor your repayment record during the life of the scheme facility and take appropriate action where there are signs of repayment difficulties.
- We will make the appropriate adjustments to ensure that your circumstances are accommodated throughout the duration of the BBLS Loan if we have reason to believe that you may be vulnerable.
If you do not make payments on time or breach other terms of the loan:
- The BBLS guarantee is provided to us and not to you. You remain responsible for repaying the whole of this loan at all times and if you fail to do so this may negatively affect your credit score or rating with credit rating agencies.
- We will always be transparent and give you reasonable notice on action we intend to take prior to doing so. We will 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 the you within this period.
Keeping you updated:
- If you miss a payment, we will provide clear information regarding the amount of the missed payment, what can be done to remedy, in what timescales, and the impact (if any) on future repayments.
- Information on the options available to you will be provided free of charge and all information provided will be clear, fair and not misleading.
Your rights as a consumer:
- Borrowers are advised that they should seek independent legal advice if they are in any doubt about the consequences of the loan agreement not being regulated by the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974 or any other aspect of taking out a loan.
- Unfortunately in these times, there may be organisations attempting to impersonate lenders. Please ensure that you are talking to an authoried respresentative of Skipton Business Finance before disclosing any information.
If you have a complaint:
We are committed to maintaining transparent business practices and at all times to act with honesty and integrity. If you feel that we haven't lived up to your expectations in any way, we'd like to know so we can put things right for you. Here you can download our complaints procedure.
Can I refer my complaint to the Financial Ombudsman Service?
If you are not happy with our final decision about your complaint, you may be able to refer your complaint to the Financial Ombudsman Service (FOS). The Financial Ombudsman Service act as an independent and impartial organisation who help settle disputes between consumers and financial services businesses. The FOS are only able to investigate your complaint if Skipton Business Finance have issued a final response or if your complaint has exceeded the 8 week limit from when it was first raised.
How to contact the Financial Ombudsman Service
Phone: 0800 023 4 567 - Calls to this number are normally free for people ringing from a fixed line phone but charges may apply if you call from a mobile phone
0300 123 9 123 - Calls to this number are charged at the same rate as 01 or 02 numbers on mobile phone tariffs.
British Business Bank
As an accredited lender of the British Business Bank, we are offering the Bounce Back Loan in order support businesses affected by Coronavirus.