Bounce Back Loan Scheme

The Bounce Back Loan Scheme (BBLS) is designed to support small and medium-sized businesses who have been affected by coronavirus (COVID-19). The Government guarantees 100% of the loan.

At a glance:

  • The Government provides accredited lenders like HSBC UK with a 100% guarantee.  Please note, the borrower remains 100% liable for the debt

  • Any business can apply for loans up to 25% of business turnover, between £2,000 and £50,000

  • Access to cash to help you keep operating

    Simple online application

  • Simple product, a term loan with a 6 year term, without early repayment fees

  • No repayment of capital required during the period of 12 months from drawdown

  • The Government pay the fees and interest for the first 12 months

    Fixed interest rate 2.5%

Apply for BBLS

Key benefits

The government provide a 100% guarantee to help you quickly get access to the cash you need get the funding you need.
Access to cash to help you keep operating
Financial support through the short-term uncertainty due to COVID-19.

You can apply for a loan if your business:

  1. Is based in the UK
  2. Has been negatively affected by coronavirus
  3. Was operating on 1 March 2020

Important Information

  • You are liable for repaying 100% of the loan and HSBC will always seek to recover the outstanding balance from you
  • State aid restrictions apply, see factsheet for further detail.
  • No personal guarantees required
  • You do not need to have a bank account with us in order to apply for or maintain this loan.
  • If you do not already have an HSBC Business Bank Account and do not want to open one, we will open a temporary feeder account to use to draw down the loan, and will then arrange with you to transfer the funds to another account in your name at another bank (subject to our standard transaction checks).
  • If you’re not an existing HSBC UK customer, we'll need to complete due diligence checks as part of on-boarding.

Loans made under the Bounce Back Loan Scheme are not subject to the usual consumer protections that apply to business lending and as such you will not have the benefit of the protection and remedies that would otherwise be available to you under the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974.

Our commitments to you under the scheme:

The Bounce Back Loan is offered by HSBC as part of the UK Government’s Bounce Back Loan Scheme (the Scheme) and which means that HSBC has agreed with the UK Government that we will:

  • provide you with information you need in relation to your loan in a way which is clear, fair and not misleading;
  • review your repayment record and act appropriately in line with our obligations under the Scheme if you appear to have difficulties with repayments;
  • if, after you have drawn down the loan, we identify or have reason to believe that you are vulnerable, consider (and where appropriate discuss further with you) what actions we can take to ensure your circumstances are accommodated;
  • not charge you any fees on the loan (including on default) or default interest, although we may continue to charge interest at 2.5% per annum if the loan is not repaid when due until such time as it is repaid;
  • allow you to repay the loan early at any time. You need to give us 10 working days' notice if you want to do this;
  • for as long as it takes you to repay the loan, provide you with:
    • details of any missed repayments and what this means for you as well as what you can do to remedy the problem, in what timescales and the impact (if any) on future payments;
    • information about what action we will take if you stop repaying the loan before we take that action;
    • the options available to you for help and assistance, including sources of free independent advice; and
    • an annual statement showing the transactions on your loan and how much is left to repay.
  • timely, clear and adequate information during the term of your loan which enables you to understand, where you fail to make repayments:
    • the amount missed;
    • what can be done to remedy the breach and in what timescales;
    • the impact (if any) on future repayments.

You are able to complain to us if you do not feel that we have met these commitments.

Missing payments

If you do not make your repayments on time we may take the following action which could have serious consequences for you:

  • cancel all or part of the loan and our obligations to you under it;
  • demand immediate repayment of all amounts due to us under the loan; and / or
  • declare that all or part of the loan is repayable on demand,

but we will give you advance notice and (unless the problem cannot be fixed) the opportunity to fix the problem before taking any of these steps.

If you fail to make your repayments on time we may also disclose information about you and the conduct of your loan to credit reference agencies (which may make it more difficult for you to borrow in future).

Complaints

For information about complaints, including details of our complaint handling procedure and whether you have a right to complain to the Financial Ombudsman Service, please visit https://www.business.hsbc.uk/en-gb/gb/generic/complaints

Further information

If you would like any more information or have any questions about the agreement, you can call us on our Coronavirus Customer Support Line 0800 0121 614 (Lines are open 8am – 6pm Monday to Friday). Please click https://www.hsbc.uk/guides/managing-money/where-to-go-for-assistance/ for guidance around who may be able to offer you free, independent advice.

Next Steps

Please ensure you have read the information on this page, which covers key product information and frequently asked questions.

You can apply quickly through our online portal if:

  • You either:
    • Already have a Business, Charity or Community Account with HSBC UK, or
    • You are operating as a Sole Trader and you have an existing HSBC UK or First Direct current account and your business started on or before 5th April 2019
  • You want to use that existing HSBC account to draw down the loan
  • You have checked the email address and telephone number on your application match the records held by the bank. If they do not match, then please update your records via Internet Banking or Telephone Banking as any variations may cause your application to be delayed
  • You have also ensured that the relevant sort code and account number is entered on your application. So, for example if you have both a personal and business account, you should enter your business account details.

Apply for Bounce Back Loan

If you do not meet the criteria to apply via our online portal:

In order for you to receive an HSBC Bounce Back Loan, you first need to open a bank account with us so that you can draw down the loan proceeds. At present you cannot draw down an HSBC Bounce Back Loan directly into a non-HSBC account.

This new account can be either:

A full HSBC UK Business Bank Account

Apply for Business Bank Account

A temporary HSBC UK Feeder Account

  • This account will be used just to draw down the funds from the Bounce Back Loan which will then transfer to your existing bank account.
  • You won’t be able to use this account for your day-to-day banking or to make loan repayments.
  • We won’t charge you for this account.  

Apply for Bounce Back Loan Feeder Account

Once your account has been opened, please use your new Business Bank Account or Feeder Account number to apply for the Bounce Back Loan Scheme.

Bounce Back Loan Scheme Frequently Asked Questions

General Information

What’s the Bounce Back Loan Scheme?

The Bounce Back Loan Scheme (BBLS) is designed to support small and medium-sized businesses, which have been impacted by the Coronavirus situation, who are looking to borrow between £2,000 and £50,000.

The government will guarantee 100% of the loan. Please be aware that you’re liable for the entire loan amount. We’ll seek to recover the 100% outstanding balance of your loan from you and before any claim is made on the government guarantee.

I’ve already applied for a CBILS loan; can I also apply for a Bounce Back Loan?

If you’ve already obtained a loan through either the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), or the Covid Corporate Financing Facility, you may be able to refinance those in full by the Bounce Back Loan Scheme.

You do not need to contact the bank now to refinance. We’ll be in touch with you automatically in a few months to see if you wish to do that and before the first repayment is due. You will not incur any fees or charges as a result of this.

Can the Bounce Back Loan Scheme be used to refinance an existing commercial facility?

The Bounce Back Loan Scheme can be used for any economic benefit to your business, enabling it to continue as a going concern, which may involve the refinancing of an existing facility used for an Eligible Purpose and to support trading or commercial activity in the United Kingdom.

How long will The Bounce Back Loan Scheme run for?

The Bounce Bank Loan Scheme will initially be available for six months from 4 May 2020 to 4 November 2020.

Will the Bounce Back Loan Scheme funds run out so I can’t access the scheme?

The Government has confirmed that the amount of funding available under the scheme will be demand-led. Therefore, there’s no immediate need to apply if you don’t need finance in the short-term.

Guarantees and Payments

Will I have to provide a Personal Guarantee or my home as security?

No personal guarantees or security will be required.

What happens if I can’t make the payment on the loan after 12 months?

If you’re concerned that you can’t meet the repayments on your loan after 12 months, then please call the Coronavirus Customer Support Line as soon as possible on 08000 121 614 (we’re open 8am-6pm, Monday to Friday).

We’ll assess your situation and discuss your options.

Customer Eligibility

What are the eligibility criteria?

Please see the ‘Quick check BBLS eligibility criteria’ section here.

Am I guaranteed to be eligible for a Bounce Back Loan?

Unfortunately, we can’t guarantee that you’ll be eligible. You must meet the scheme rules which are set out in the eligibility criteria here.

Do I need to provide evidence that I have a viable business?

You’ll need to self-certify that you’re not an ‘undertaking in difficulty’ and that you’ll be able to repay the borrowing as scheduled.

You must also self-certify that your business has been adversely impacted by the coronavirus outbreak.

Do I need to be an HSBC UK customer to apply for a Bounce Back Loan?

You don’t need to be an existing HSBC UK customer to apply and you do not need to have a bank account with us in order to apply for, or maintain, this loan. However, please bear in mind it may take longer to process your application as we need to carry out additional checks.

If you do not already have an HSBC Business Bank Account and do not want to open one, we will open a temporary feeder account to use to draw down the loan, and will then arrange with you to transfer the funds to another account in your name at another bank (subject to our standard transaction checks).

I have had deminimis aid in the past, can I still get a loan?

You’ll need to self-certify that your business hasn’t received more than £711,200 in State Aid since 19 March 2019 under the State Aid Temporary Framework1 (or £106,680 in the case of fisheries and aquaculture businesses, or £88,900 for agriculture businesses).

What sectors are ineligible for the Bounce Back Loan Scheme?

The following sectors aren’t eligible:

  • Banks, insurers and reinsurers (but not insurance brokers)
  • Public sector bodies
  • Further educational establishments if they are grant funded
  • State funded primary and secondary schools

There are also certain restrictions around the following sectors and you’ll need to check carefully around the loan amount being requested:

  • Production of Agricultural Products
  • Fisheries and Aquaculture

What percentage of my annual turnover must be generated by trading activities to be eligible for BBLS?

You’ll need to self-certify that if you receive income from sources other than trading activity, more than 50% of income, together with that of any group, is derived from trading activity. This doesn’t apply to charities or Further Education Colleagues.

Can I use BBLS to access finance to pay wages/salaries?

Yes, the BBLS can be used to support short term cash-flow needs.

Is there a turnover threshold?

You can apply for a loan which is up to 25% of your turnover for calendar year 2019 (1 January – 31 December), from a minimum of £2,000, up to a maximum of £50,000.

If your business was established after 1 January 2019, you should apply the 25% to your estimated annual turnover from the date you started your business.

How should I calculate trading activity and turnover for start-ups?

For start-ups, or SMEs which have traded for less than 12 months, you should estimate this based upon your business forecasted turnover for the first 12 months of trading.

1 State Aid under the temporary framework includes CBILS, CLBILS, and the Small Business & Retail Hospitality and Leisure Grants Fund.

How to Apply

Where do I go to apply for a Bounce Back Loan?

You can apply online by using our Bounce Back Loan application portal. Please review all of the information before entering the portal.

Are there any documents required?

If you’re applying for a Bounce Back Loan and you have a personal current account that you have used for your business purposes, and your business was established on or before 5 April, you’ll need to provide a scanned copy of your 2018/19 self-assessment tax return

Please make sure you have this information available so we can progress your application.

How quickly are these loans approved?

If you are an HSBC UK customer, once you’ve submitted your application through the portal, we will aim to get back to you within a few days. If you are not an existing HSBC UK customer this will take longer as we need to carry out additional checks.

I’m waiting on a response to a query I’ve made, when should I expect to receive a call-back?

We’re working very hard to support our customers in these difficult times and are currently experiencing very high call volumes. We ask customers to please be patient with us, as we work through their calls. We’ll get back to you as soon as we can.

Bounce Back Loan Scheme (BBLS) is delivered by the British Business Bank, through HSBC UK as an accredited lender. BBLS will support the continued provision of finance to UK SMEs during the Covid-19 outbreak. The Bounce Back Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of the Secretary of State for Business, Energy and industrial Strategy (BEIS).

Important Information

Useful Links


Apply for BBLS

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