To ask the Chancellor of the Exchequer, whether the Government plans to extend the Bounce Back Loan Scheme in response to the additional time businesses have been subject to covid-19 lockdown restrictions.
26 November 2020
The Government launched the Bounce Back Loan Scheme (BBLS) to ensure that the smallest businesses could access loans of up to £50,000 in a matter of just days. As of 15 November, the scheme had supported nearly 1.4 million businesses with facilities totaling over £42 billion.
Originally, the scheme was due to close to new loan applications on 4 November. However, this end date has already been extended twice; initially to 30 November and subsequently to the existing scheme end date of 31 January 2021. This extension ensures that businesses have more time to make loan applications, supporting them through the pandemic.
Furthermore, the Government is continuing to work with lenders and business representatives to introduce a new, successor loan guarantee scheme, set to begin once the existing guarantee schemes (BBLS, along with the Coronavirus Business Interruption Loan Scheme and Coronavirus Large Business Interruption Loan Scheme) close to new applications. More details around this new scheme will be released in due course.