UK Finance response to new fast-track finance scheme

Responding to the chancellor’s announcement of a new fast-track finance scheme, the Bounce Back Loans scheme (BBLS), Stephen Jones, chief executive of UK Finance, said:

“Finance providers are committed to helping small and medium sized businesses through these tough times and the new Bounce Back Loans scheme (BBLS) announced by the chancellor today will make it simpler and faster for smaller businesses to apply through an online form and get the loans they need.

“The terms of this new scheme and the changes being made by the authorities to existing lending rules to support its launch will enable lenders approved by the British Business Bank to process these loan applications based on a short, simple online application form and for lenders to assess the applications at pace without the need for forward looking financial plans.

“The BBLS will sit alongside a broad package of support that lenders are providing SMEs including through the government’s CBIL scheme, the CLBIL scheme, as well as capital repayment holidays, extended overdrafts and asset-based finance.

“Lenders approved by the British Business Bank are now working non-stop to get the new scheme up and running from Monday. Further details will be provided for those businesses who wish to apply for a bounce back loan from the end of this week.”

Background:

• Under the Bounce Back Loans scheme, businesses will be able to borrow between £2,000 and £50,000 from lenders approved by the British Business Bank. Loans will be interest free for the first 12 months.
• The government will provide lenders with a 100% guarantee for the loan, as well as paying any fees and interest for the first 12 months.
• Businesses will be able to apply for a Bounce Back Loan through a short, standardised online application, with loans due to reach businesses within days of an application being successful.