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Bounce Back Loan Scheme: Bank Services

Question for Treasury

UIN 179682, tabled on 12 April 2021

To ask the Chancellor of the Exchequer, whether eligibility for the Bounce Back Loan Scheme is dependent on an applicant holding a bank account with a bank that is accredited under that scheme.

Answered on

15 April 2021

The Government launched the Bounce Back Loan Scheme (BBLS) on 4 May 2020 to ensure that the smallest businesses could access loans from £2,000 up to £50,000, capped at 25% of turnover in a matter of just days. As of 21 March, over 1.5 million UK businesses have received Bounce Back Loans worth over £46 billion. Please note the scheme has now closed to new applications.

Whilst the scheme was open, there was no requirement under the scheme rules for borrowers to hold a bank account with an accredited lender to be eligible for a facility. However, decisions on what products were offered to individual businesses were fully delegated to lenders.

Under the scheme rules applicants were required to make a number of declarations to self-certify their eligibility, for example, that they will only use funds solely for the economic benefit of their business. Accredited lenders also carried out anti-fraud, know-your-customer and anti-money laundering checks as part of the application process.

Answered by

Treasury
Named day
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