Managing Your Business

Bounce Back Loan Scheme

The Bounce Back Loan Scheme is now closed to new applications.
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Supporting UK businesses during coronavirus, the Bounce Back Loan Scheme is now closed.

Greater flexibility with repayments – Pay As You Grow (PAYG)

Businesses that took out government-backed Bounce Back Loans to get through Covid-19 have greater flexibility to repay their loans.

Repayment options and amounts will change depending on the selections made under the scheme. Borrowers are responsible for repaying their Bounce Back Loan and remain fully liable for the debt.

Pay As You Grow (PAYG) enables businesses who are repaying their Bounce Back Loans to:

Extend Your Loan Term

Request an extension of your loan term to 10 years from 6 years, at the same fixed interest rate of 2.5%

6 Month Capital Repayment Holiday

Reduce your monthly repayments for 6 months by paying interest only. This option is available up to 3 times during the term of your Bounce Back Loan

Make No Repayments For 6 Months

Take a repayment holiday for up to 6 months. This option is available once during the term of your Bounce Back Loan.

You can use these options individually or in combination with each other. You should be aware that you will pay more interest overall if you use one or more of these options, and that the length of the loan will increase in line with any repayment holidays taken.

If you want Pay As You Grow to start from your next loan repayment, you need to apply and confirm your selection at least 7 days before your next payment is due.

Bounce Back Loan Scheme Frequently Asked Questions

Will using Pay As You Grow affect my ability to obtain finance in the future?

Using Pay As You Grow will not, in principle, affect your ability to obtain finance in the future. Pay As You Grow is designed to alleviate financial difficulty, even before it arises, by giving you flexibility in meeting your repayment obligations. Using Pay As You Grow will not affect your credit rating, but it may affect future creditworthiness assessments. For example, when considering a request for additional funding a lender will take into consideration incomings and outgoings, including existing debt repayments such as the Bounce Back Loan Scheme facility. It will also consider your total debt exposure, which will again include the outstanding Bounce Back Loan Scheme facility.

Other business finance support options

In the first instance, businesses who have concerns regarding repaying debt should contact their lender.

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: or 0800 138 7777
  • Citizens Advice:
  • National Debtline: or 0808 808 4000
  • Advice NI: or 0800 028 1881
  • Advice UK: or 0300 777 0107
  • Business Debtline: or 0800 197 6026
  • StepChange Debt Charity: or 0800 138 1111 (service not available to Limited Liability Partnerships or Limited Companies)
  • Money Advice Service: or 0800 138 7777

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:

Guide to business resilience

The British Business Bank’s Guide to Building Business Resilience is packed with impartial, practical, and actionable information to help smaller businesses manage costs, boost profitability, and increase resilience.

The Finance Hub

Designed to simplify the complexities of business finance, the Finance Hub is a comprehensive online resource that empowers businesses of all sizes, from start-ups to established companies, offering a diverse range of information and resources to navigate the world of finance. It serves as a centralised hub where you can find independent and impartial guides, checklists, and articles, carefully curated to provide you with the knowledge needed to make informed financial decisions for your business.

You can visit the British Business Bank hub here.

Important Information

The Standards for Lending Practice

Find out what you can expect when you borrow from HSBC

Bounce Back Loan Factsheet (PDF,49KB)

Read more about this scheme


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