Bounce Back Loan Scheme (BBLS)
Funding to support small and medium sized businesses
The Bounce Back Loan Scheme is coming to an end, so you’ll need to apply online on or before 31st March 2021.
If you already have a Bounce Back Loan, you may be able to apply for a top up to increase it.
Please note we are only accepting Business Current Account applications from existing Clydesdale Bank customers or new customers with a business established on or after 2nd March 2020.
What is the Bounce Back Loan Scheme?
The Bounce Back Loan Scheme has been designed to help small and medium-sized businesses impacted by coronavirus access funding quickly.
- Businesses can borrow up to 25% of 2019 turnover on a term loan, from a minimum of £2,000, up to a maximum of £50,000
- Loans are available for a term of 6 years - with no charge for full or partial early repayment
- You will not be asked to provide a personal guarantee
- You will not be asked to make any capital repayments for 12 months
- We will not charge you any interest payments for the first 12 months - the Government will reimburse us
- The loan value is guaranteed by the Department for Business, Energy and Industrial Strategy. The guarantee is provided to the Bank and the borrower remains responsible for repaying 100% of the loan.
Who is the Bounce Back Loan Scheme for?
- UK businesses established before 1 March 2020 that have been impacted by coronavirus
- UK businesses who are not bankrupt, are not in debt restructuring proceedings, are not in liquidation or administration, and who have not taken any step to commence dissolution.
- Sole traders, partnerships, limited companies, LLPs and charities
- Banks, building societies, insurers, reinsurers, state funded primary and secondary schools and public sector organisations are not eligible for this scheme.*
*Ring fenced banks, like Clydesdale Bank PLC (which also trades as Virgin Money and Clydesdale Bank), are prohibited from entering into certain types of transactions with financial institutions. Broadly speaking, the term “financial institution” includes investment firms, alternative investment fund managers, structured finance vehicles, credit institutions, certain types of insurance companies, UCITS funds and financial holding companies.
Who can apply for a Clydesdale Bank Bounce Back Loan?
- Existing Clydesdale Bank Business Current Account customers can apply online
- Existing Clydesdale Bank or Virgin Money Personal Current Account customers can apply online if their business was established before 5th April 2019 – but must provide a copy of their 2018/19 self-assessment tax return
- If you manage your business through an existing Clydesdale Bank or Virgin Money Personal Current Account, and your business was established between 6th April 2019 and 1st March 2020, you will need to open either a fee-free loan servicing account or choose a Business Current Account before applying for a Bounce Back Loan.
- Businesses can only have one Bounce Back Loan. If your business is part of a group, that group can only have one Bounce Back Loan. For the purposes of eligibility under the Scheme, a group is defined by having a holding company at the top of their structure.
- Customers who already have a Clydesdale Bank Bounce Back Loan may be able to increase this by applying for a Bounce Back Loan Top Up.
- Businesses with an in-progress application for CBILS can choose to apply for BBLS instead
- Businesses that have received a loan through CBILS can apply for a BBLS loan if it is used to refinance the whole of the CBILS facility
Paying back your loan
Interest will be applied after the 12 months interest free period at a fixed rate of 2.5% and will apply for the remaining period of the loan
- Monthly repayments will begin in the 13th month after the loan has been drawn down. You will make 59 equal capital instalment payments to us and one final payment at the end.
- Your total monthly repayments to us will be made up of both the capital instalment and the interest. You will see two payments leave your account each month.
- Interest will be paid on the first business day of the month regardless of when the capital instalments are paid.
- Your last capital instalment will be made 72 months after drawdown unless you decide to repay your loan earlier. There are no charges associated with early repayment.
Bounce Back Loans Key Information for Borrowers
Representative example
| Loan Value (Capital) | 59 Capital Instalments | Final Capital Instalment | Total Interest Paid Over the Term | Total Capital and Interest Payable |
|---|---|---|---|---|
| - | - | - | - | - |
- These rates are indicative and payments may differ depending on the date the loan is drawn down.
- You will have the right to cancel your application for the scheme within 14 days of the offer date.
By selecting "Apply now" you are confirming that you accept the repayment terms of this product.
British Business Bank
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 www.british-business-bank.co.uk/BBLS
Coronavirus support: FAQs for businesses
We understand you might be worried about the financial impact of coronavirus on your business and we’re here to help.
You can find impartial information and guidance on money matters on the “Money advice service” website.
Clydesdale Bank is covered by the Financial Services Compensation Scheme (FSCS), Find out more.