Bounce Back Loans: Get up to £50,000 from Government scheme

Last updated: 29 March 2021

Update: The Bounce Back Loan Scheme is closed for new applications from 31 March 2021. For more information, please visit the British Business Bank website. If you have any questions about a Bounce Back Loan taken out with Tide, please contact the Member Support team in your Tide app.

With the Bounce Back Loan Scheme, you can borrow from £2,000 to 25% of your annual turnover, up to a maximum of £50,000 for up to six years.

On 27 April 2020, Chancellor Rishi Sunak announced the new scheme, adding to the existing support for small businesses affected by coronavirus.

The Government is giving accredited lenders a 100% guarantee for the loans, and aiming to deliver loans through accredited lenders as quickly as possible.

• Can you get a Bounce Back Loan from Tide?
• What’s available?
• Are you eligible?
• What is the interest rate on a Bounce Back Loan?
• What are the fees on a Bounce Back Loan?
• Do you have to give a personal guarantee?
• How do you apply for a Bounce Bank Loan?

Can you get a Bounce Back Loan from Tide?

Update: The Bounce Back Loan Scheme is closed for new applications from 31 March 2021. For more information, please visit the British Business Bank website. If you have any questions about a Bounce Back Loan taken out with Tide, please contact the Member Support team in your Tide app.

What’s available?

You can borrow from £2,000 to 25% of your annual turnover, up to a maximum of £50,000.

For the first 12 months, you won’t pay any interest and you won’t have to make any repayments. After 12 months, the interest rate is 2.5% per year.

Loan terms will be for up to six years although you can repay early with no fee.

The Chancellor stated that if your application is successful, you’ll be able to get the cash “within days”.

Are you eligible?

You’re eligible to apply for a Bounce Back Loan if your business:

• is based in the UK
• was established before 1 March 2020
• has been negatively affected by coronavirus
• earns 50% or more of its income from trading
  This isn’t required if your business is a charity or a further education college.
• wasn’t an ‘undertaking in difficulty‘ on 31 December 2019
  Or if your business was an undertaking in difficulty, you certify that taking out a Bounce Back Loan won’t breach state aid rules and that you won’t use the loan for export-related activities
• will use the loan money as working capital or to invest in your business

You aren’t eligible to apply if your business is:

• a bank, insurer or reinsurer
  (but insurance brokers are eligible)
• a public-sector body
• a state-funded primary or secondary school
• already getting a loan from the COVID-19 Corporate Financing Facility, the Coronavirus Large Business Interruption Loan Scheme or the Coronavirus Business Interruption Loan Scheme

If you’re getting a loan of up to £50,000 under the Coronavirus Business Interruption Loan Scheme, you can transfer it to the Bounce Back Loan Scheme. The Government states that you have until 4 November 2020 to arrange this with a lender.

What is the interest rate on a Bounce Back Loan?

For the first 12 months, you won’t pay any interest because the Government will pay it for you.

After 12 months, the interest rate is 2.5% per year.

What are the fees on a Bounce Back Loan?

Often there are fees on a loan such as an arrangement fee or to repay the loan early. With Bounce Back Loans, there are no fees. This is because the Government rules state that lenders aren’t allowed to charge any fees.

Do you have to give a personal guarantee?

No – you won’t be asked to sign a personal guarantee on a Bounce Back Loan. The Government guarantees 100% of your loan with your lender.

How do you apply for a Bounce Back Loan?

The scheme opened for applications on Monday 4 May 2020. To apply, head over to the British Business Bank website, read all the information there and then follow the instructions:
British Business Bank | Bounce Back Loan Scheme

The Bounce Back Loan Scheme is closed for new applications from 31 March 2021. For more information, please visit the British Business Bank website. If you have any questions about a Bounce Back Loan taken out with Tide, please contact the Member Support team in your Tide app.

Read more

Read more from the Government:
Gov.uk | Guidance | Apply for a coronavirus Bounce Back Loan
Gov.uk | Small businesses boosted by bounce back loans

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