To ask the Secretary of State for Business, Energy and Industrial Strategy, whether accredited lenders that assess applications to the Bounce Back Loan Scheme make their assessments (a) based on the applicant's individual merit and (b) not based on the applicant's status as a current business customer.
15 May 2020
The Bounce Back Loan Scheme (BBLS) has been introduced to help small and medium-sized businesses to borrow between £2,000 and £50,000. Businesses are not required to bank with a lender in order to apply for a Bounce Back Loan with them. A full list of accredited lenders can be found on the British Business Bank website.
To be eligible for the scheme, businesses must:
- be based in the UK
- have been negatively affected by coronavirus
- not have been an ‘undertaking in difficulty’ on 31 December 2019
- not already be claiming under:
o Coronavirus Business Interruption Loan Scheme (CBILS)
o Coronavirus Large Business Interruption Loan Scheme (CLBILS)
o COVID-19 Corporate Financing Facility
To apply for the scheme businesses must complete a short, simple, online application form, meaning that applications can be submitted and processed rapidly. Businesses should then be able to access loans within a matter of days. The Government is providing lenders with a 100% guarantee on each loan to give them the confidence they need to support the smallest businesses in the country.
The Government continues to work with banks and other finance providers to help SMEs access the finance they need.