Which banks offer Bounce Back Loans?
Twenty-nine lenders including all the high-street banks offer Bounce Back Loans.
Adams & Company Bounce Back Loan
Arbuthnot Latham Bounce Back Loan
Bank of Ireland UK Bounce Back Loan
Bank of Scotland Bounce Back Loan
Close Brothers Bounce Back Loan
Clydesdale Bank Bounce Back Loan
Funding Circle Bounce Back Loan
Starling Bank Bounce Back Loan
The Co-operative Bank Bounce Back Loan
Yorkshire Bank Bounce Back Loan
Can I open a Bounce Back Loan without a business account?
Most banks say that existing personal customers will need to a separate business account to service their Bounce Back Loan.
Danske Bank, RBS/NatWest, Starling, TSB, Ulster Bank state you must open a business account, even if you’re an existing customer.
And Bank of Scotland, Clydesdale and Yorkshire Bank say you “may” need to open what they term a “feeder” account for your Bounce Back Loan.
Which Bounce Back Loan lenders are open to new customers?
| Which banks accept new customers for Bounce Back Loans? | ||
|---|---|---|
| Bank | Do existing customers need to open a business account to apply? | Is bank accepting new BBL customers? |
| Bank of Scotland | No but need to open fee-free 'loan servicing account' | No |
| Barclays | No | No |
| Clydesdale Bank | You 'may' need to | No |
| Co-op Bank | Yes | No |
| Danske Bank | Yes | No |
| HSBC | No* | No* |
| Lloyds Bank | No but need to open fee-free 'loan servicing account' | No |
| NatWest | Yes, open a feeder/business account | No |
| RBS | Yes, open a feeder/business account | No |
| Santander | No | No |
| Starling | Yes | Yes |
| TSB | Yes | No |
| Ulster Bank | Yes, open a feeder/business account | No |
| Yorkshire Bank | You 'may' need to | No |
| Source: Moneysavingeexpert.com | ||
| *HSBC customers needed to have had a feeder account approved by Sep 30 2020 |
>See also: Lloyds rapped for forcing Bounce Back Loans borrowers to open accounts
Can I have a Bounce Back Loan if I am a new customer?
Currently only Starling Bank is accepting new bank customers for Bounce Back Loans
How do I apply for a Bounce Back Loan?
Once you have decided on a lender – which apart from Starling Bank now must be your own personal account provider – you will need to fill in a short application form online, which certifies that your business is eligible for a Bounce Back Loan.
How do I know if I’m eligible?
Your business must be able to self‑declare to the lender that it:
- has been impacted by the coronavirus (Covid-19) pandemic
- was not a “business in difficulty” as of December 31 2019
- is engaged in trading or commercial activity in the UK and was established by March 1 2020
- is not using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will refinance the whole of the CBILS, CLBILS or CCFF facility
- is not in bankruptcy or liquidation at the time it submits its application for finance
- derives more than 50 per cent of its income from its trading activity
Are any businesses ineligible for Bounce Back Loans?
Bounce Back Loans are available to businesses in all sectors, apart from:
- credit institutions
- insurance companies
- public sector organisations
- state-funded primary and secondary schools
What happens if I do qualify for a Bounce Back Loan?
If your business is eligible, you will be subject to appropriate customer fraud, Anti Money Laundering (AML) and Know Your Customer (KYM) checks.
Do I have to put up a personal guarantee?
Under the Bounce Back Loan Scheme (BBLS), lenders are not allowed to:
- take any form of personal guarantee
- take recovery action over the borrower’s personal assets (such as your main home or personal vehicle)
How long must I wait for a decision?
Lenders are supposed to put the money into your business account within a few days. However, anecdotally successful applicants have had to wait for weeks to have their applications processed.
Further reading on Bounce Back Loans
