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.