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.
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.