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

  • Our Bounce Back Loans are currently only available to existing eligible HSBC UK customers.

    The scheme closes on 31st March 2021.

  • You can apply for a Bounce Back Loan if you successfully opened a new Business Current Account, HSBC Kinetic Current Account or Feeder Account and your application for the account was made before 9am on the 30 September 2020.

  • 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

Customers that made a Bounce Back Loan application, and applied for less than 25% of their revenue, may apply to top up their loan to the full amount through our dedicated portal before 31 March 2021.

You can apply for a top up by clicking the Apply button above. To find out more, click here to read our FAQs.

Key benefits

The government provide a 100% guarantee to help you quickly get access to the cash you need get the funding you need.
We will send you a repayment schedule outlining your options, around three months before your first payment is due. You do not need to contact us in advance.
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:

  1. You have an existing Business, Charity or Community Account with HSBC UK, or you are an eligible sole trader using an existing HSBC UK Personal, First Direct Account or HSBC Kinetic Current Account.
  2. Your business is based in the UK
  3. Your business has been negatively affected by Coronavirus
  4. Your business was operating on 1 March 2020
  5. You have applied before the scheme ends, on 31 March 2021

You can apply for a top-up loan if:

  1. You made a Bounce Back Loan application and did not initially apply for the value of up to 25% of your self-certified annual turnover
  2. You apply before 31 March 2021
  3. You meet certain eligibility criteria. The upper limit for a Bounce Back Loan remains £50,000 and the minimum borrowing amount for a top-up is £1,000.

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

Loans made under the Bounce Back Loan Scheme and any Top Up loan 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 and any Top-Up loan that you receive are offered by HSBC UK 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.co.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:
    • You have an existing Business, Charity or Community Account with HSBC UK
    • You are operating as a Sole Trader (not a Limited Company, LLP or Partnership) and you have an existing HSBC UK or First Direct current account (not a Savings or other account type) and your business started on or before the 5th April 2019 and you can provide a Self-assessment Tax Return for this as part of your application, or
    • You successfully opened a new Business Current Account, HSBC Kinetic Current Account or Feeder Account and your application for the account was made before 9am on the 30th September 2020
  • You have an existing Business, Charity or Community Account with HSBC UK
  • You have applied before the scheme ends, on 31 March 2021
  • 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
  • You are applying for a Bounce Back Loan top-up

Apply for Bounce Back Loan

Apply for Bounce Back Loan Top-up

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 Back Loan Scheme was recently extended and will remain open for applications until 31 March 2021.

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.

Can I switch my banking to another bank if I have an outstanding BBL with HSBC?

Yes. You can switch your banking to another bank and keep your Bounce Back Loan (BBL) with us. You'll just need to make sure your Direct Debit for the BBL is switched across to your new bank to maintain your repayments.

If you're using the CASS (Current Account Switching Service), this will happen automatically. If you've chosen to switch without using CASS, you'll need to contact us to change the account details on your BBL Direct Debit by calling 03457 60 60 60 (textphone 03457 125 563; from outside the UK +44 1226 260 878). For line opening hours, see When is Business Telephone Banking open?

Do I need to continue to maintain a bank account with HSBC during the term of the Bounce Back Loan?

No – you don't need to maintain a bank account with HSBC during the term of your Bounce Back Loan. You're free to use another provider to manage your business banking, and you can switch your business current account to another provider while you maintain your loan with HSBC. You're able to make repayments from another bank account at another bank (subject to usual transaction checks).

Managing Debt

I am worried about my finances. Where can I go to get help?

If you’re worried about your finances, please go to our support hub here. This page shows how you can contact us directly for help.

You can also contact the following organisations for free advice:

  • Money and Pensions Service: moneyadviceservice.org.uk or 0800 138 7777
  • Citizens Advice: citizensadvice.org.uk
  • National Debtline: nationaldebtline.org.uk or 0808 808 4000
  • Advice NI: adviceni.net or 0800 028 1881
  • Advice UK: adviceuk.org.uk or 0300 777 0107
  • Business Debtline: bdl.org.uk or 0800 197 6026
  • StepChange Debt Charity: stepchange.org.uk or 0800 138 1111 (service not available to Limited Liability Partnerships or Limited Companies)
  • Money Advice Service: moneyadviceservice.org.uk or 0800 138 7777

What resources are available from the British Business Bank and UK Finance?

In addition, the British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services. You can visit their hub here.

UK Finance also provide support information on dealing with debt. Download their support leaflet here.

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 in the first 12 months of my loan repayments?

You will receive a payment holiday for the first year of your loan, with the interest being paid for by the Government, via a Business Interruption Payment.

After the first 12 months, you will need to start making monthly repayments to repay the amount you borrowed, plus interest from the date your repayment holiday ends.

We will send you a repayment schedule outlining your options, around three months before your first payment is due. You do not need to contact us in advance.

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.

What happens if I no longer need my Bounce Back Loan?

If you no longer need the loan, you can choose to pay it back early. You’ll then pay less interest. There are no early repayment charges and you won’t pay any interest if you pay the full amount before the end of your initial 12-month repayment holiday.

Or you can make a one-off repayment, as well as additional payments on a regular basis, and doing so will also help save you money on your interest payments.

What other repayment options are available to me?

The Government has announced Pay As You Grow options for Bounce Back Loan borrowers to help businesses get back to regular trading. Pay As You Grow could give you more time and flexibility to pay back your loan.

Pay As You Grow options will be available to you once you start to repay your Bounce Back Loan, from 12 months after it was first approved.

Using these options won’t affect your credit score, though it may influence how we assess your creditworthiness in the future and your loan may cost you more overall.

The options available to you when you are due to make your first payment after 12 months are as follows:

  1. If you expect to be in a better position to repay in the future:

    You could reduce your monthly repayments for six months by paying interest only. This option is available up to three times during the term of your Bounce Back Loan.

    OR:

    You could take a payment holiday for six months. This option is available once during the term of your Bounce Back Loan.


  2. If you’re only able to repay a smaller amount:

    You could request an extension of your loan term from six years to 10 years at the same interest rate of 2.5%.

    If you’re considering this option you should think carefully about your ability to repay over a longer timeframe, taking into account such things as if you intend to cease trading or retire within the revised term of your Bounce Back Loan.

Please note for all three options that the total amount you owe will go up. This is because your interest costs increase as you’re repaying your loan over a longer period.

You can use options 1 and 2 together if you need to.

What are the Bounce Back Loan terms and conditions?

When you applied for your Bounce Back Loan, you declared that you understood that:

  • You are fully liable for all repayments, and if you are unable to meet these obligations, this could negatively affect your credit score.
  • The 100% government guarantee is provided to cover any losses the lender makes and does not cover any losses that you might suffer if you are unable to meet your payment obligations.
  • We would not carry out any affordability checks on your application.

The full set of declarations you made will be on your Bounce Back Loan application form. Additional terms and conditions you agreed to are detailed in your facility letter.

Do I need to use the same bank account to make my repayments that I used to apply for the Bounce Back Loan?

No – you don't need to use the same bank account that you used to apply for your Bounce Back Loan to make repayments. You can use another HSBC bank account, or a bank account at another bank (in each case, subject to usual transaction checks).

What happens if I find I'm struggling to repay my Bounce Back loan or need flexibility to repay?

On 24 September 2020, the Chancellor announced new Pay as You Grow measures for borrowers who've accessed the Bounce Back Loan Scheme (BBLS). The measures will give you the option to:

  • Extend the length of your loan from six years to ten years
  • Make interest-only payments for six months, with the option to use this up to three times throughout the loan
  • Request a six-month repayment holiday

You'll be able to use these options individually or in combination with each other, as well as having the option to fully repay your loan early with no early repayment charges. These standardised options will be communicated to all borrowers 3 months before repayments start. If you already have a BBLS with us, we'll send you a communication soon, with details of the various 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?

Bounce Back Loans are only available to those who:
  • Have an existing Business Current Account or Business Feeder Account with HSBC UK
  • Have an application in progress for Business Current Account or Business Feeder Account with HSBC UK which was submitted before 9am on the 30th September 2020
  • Are eligible sole traders using their existing HSBC UK Personal or First Direct Account.

Do I need to continue to maintain a bank account with HSBC during the term of the Bounce Back Loan?

No - you don't need to maintain a bank account with HSBC during the term of the loan. You're able to make repayments from another bank account at another bank (subject to usual 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 and please note that we are currently only accepting existing eligible HSBC UK customer applications.

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. As every application is unique some may take longer to process than others.

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.

How to Apply for a Bounce Back Loan Top-up

How do I top-up my Bounce Back Loan?

If the amount you borrowed under your original Bounce Back Loan was less than 25% of your annual turnover you stated on your original Bounce Back Loan application form, you’re now permitted to apply for the remaining amount via a top-up subject to meeting certain eligibility criteria. Please note that this top-up can only be applied to the turnover that you self-certified at the time of your original application.

The upper limit for a Bounce Back Loan remains £50,000, and the minimum borrowing amount for a top-up is £1,000. Any top-up to your existing Bounce Back Loan will result in increased repayments and interest amounts and you should consider carefully whether you are able to meet the repayments due at the end of the capital and interest free period. Applications can be made by clicking the Apply button at the top of this page and must be made before 31 March 2021.

My turnover has changed; can I borrow more?

No, we will use the information provided in the original application form.

Can I apply for a top-up with HSBC UK if my original Bounce Back Loan was completed by another lender?

No, you can only get a top-up from the same lender who gave you the original Bounce Back Loan.

Can I apply for more than one top-up?

No, you may only apply for a top-up once.

What interest rate applies?

An interest rate of 2.5% per annum applies on the top-up  This is the same interest rate which applies to your existing Bounce Back Loan.

When are repayments due on the top-up?

No repayments are required up to the date on which the capital repayment holiday on your existing Bounce Back Loan expires (i.e. 12 months after the initial draw-down of the original loan amount).  Please note that your repayments and interest cost will be higher as a result of receiving a top-up.  These will be displayed in your updated loan agreement if your application for a top-up is successful.

Will the term of my original Bounce Back Loan be extended if I receive a top-up?

No, the term of the top-up will expire on the same date as the term of your original Bounce Back Loan.

Managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit british-business-bank.co.uk.

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Important Information

Useful Links


Apply for BBLS

Customers that made a Bounce Back Loan application, and applied for less than 25% of their revenue, may apply to top up their loan to the full amount through our dedicated portal before 31 March 2021.

You can apply for a top up by clicking the Apply button above. To find out more, click here to read our FAQs.

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