The BBL scheme provides small and medium businesses (SME’s), micro businesses and other businesses with financial assistance in the form of smaller loans up to £50,000. It is part of a series of government measures available in support of UK businesses impacted by COVID-19 and provides a guarantee for 100% of the loan.
The Bank of Ireland UK is accredited to offer the BBLS scheme to eligible customers and below are the details on the features, eligibility, important information, FAQ’s and how you can apply online.
What are the key features of the Bounce Back Loan Scheme?
- The scheme provides loans from £2,000 up to £50,000 – (up to a maximum of 25% of your annual turnover)
- There is no arrangement fee or guarantee premium
- It is a fixed 6 year loan term
- The interest rate is fixed at 2.5%
- There is no repayment of capital required during the period of the first 12 months from drawdown
- The Government pays the first 12 months interest
- Your first repayment will be on month 13 and will continue for the remainder of the term
- Early Repayment is possible with no early repayment fees applicable
- A personal guarantee is not required
- It is important to remember this is a loan and not a grant and your business is liable for repaying 100% of the loan
Eligibility – You can apply for a Bounce Back Loan if:
- You are an existing Bank of Ireland UK Business Customer*
- Your business is a sole trader or partnership, or a company or limited liability partnership incorporated or established in the UK, or tax resident in the UK but you are not eligible if your business is a bank, building society, insurance company, public sector organisation, state-funded primary or secondary school, or an individual.
- Your business has been negatively affected by coronavirus
- Your business was trading in the UK before the 1st March 2020
- Your business (and any wider group of which it is part) is not already in the process of applying for or has not already received a Bounce Back Loan Scheme facility or has not yet obtained a loan through either the Coronavirus Business Interruption Loan Scheme or the Coronavirus Large Business Interruption Loan Scheme. IF you have recently drawn or been approved for one of these facilities by Bank of Ireland UK, meet the criteria for the BBLS and wish to transfer please contact your Business Relationship Manager, email us on BBNICovidfirstname.lastname@example.org or call 0800 109 010 (9am to 5pm Monday to Friday)
- Your business is not in bankruptcy, liquidation or undergoing debt restructuring
- If at 31 December 2019, your business is a “business in difficulty” you must confirm within the application process that you do not breach de minimis State aid restrictions and that the loan will not be used to support export-related activities. Please complete the Business In Difficulty Questionnaire to understand if your business would be considered as being in difficulty
*We are working hard to do all we can to help our existing business customers with support under the Bounce Back Loan Scheme. To support this we are currently only accepting new applications for Business Current Accounts opened on or before 4th May 2020. We will keep this position under review and provide further details on our website if this changes.
The Government has determined that loans made under the Bounce Back Loan Scheme:
- do not benefit from the usual consumer protections that apply to business lending and you will not have the protections and remedies that would otherwise be available to you under the Consumer Credit Act 1974;
- will not have credit or affordability checks conducted and lenders have no responsibility or duty of care for your decision to borrow; and
- are based on you self-certifying your eligibility for the Scheme.
If you are in any doubt about the consequences of Bounce Back Loans not being regulated by the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974, you should seek independent legal advice.
The 100% guarantee that is provided by the government under this scheme is to cover any losses made by lenders, and does not cover losses that you might suffer if you are unable to meet your payment obligations. You will remain responsible for repaying the whole of this loan at all times.
If you fail to make any repayments on a Bounce Back loan, we will be entitled to take action against you (or where there is more than one borrower, any one or more of you) to recover the full amount of the Bounce Back Loan. Missing repayments could result in legal proceedings, have a negative impact on your credit score and make it more difficult for you to obtain credit in the future.
You recognise that by providing inaccurate or incomplete information in your application that you will be regarded as attempting to gain, or gaining, a financial advantage dishonestly and as such will be liable to criminal prosecution for fraud under the Fraud Act 2006.
In line with the requirements of the Bounce Back Loan Scheme, set out below is the information in respect of our relationship with you, on matters to address during the life of the facility. We have agreed:
- To monitor your repayment record during the life of the Scheme Facility and take appropriate action where there are signs of actual or possible repayment difficulties, in accordance with BBLS.
- Where we identify you as vulnerable (within the meaning set out in CONC 7.2, see https://www.handbook.fca.org.uk/handbook/CONC/7/?view=chapter ) or have reason to believe that you may be vulnerable, appropriate adjustments should be made to ensure your circumstances are accommodated throughout the duration of the Scheme Facility.
- Upon default by you, we agree that we will give you a reasonable period to remedy any breach and will not treat the same as an event of default if it is remedied by you within this period.
- We will not require you to pay any fees of any description (including on default) or any default interest (except that we may continue to charge interest at 2.5% per annum if the Scheme Facility is not repaid when due until such time as it is repaid).
- To pay due regard to your information needs and provide information to you in a way which is clear, fair and not misleading.
- Where you want to make a formal complaint to us, the easiest way is online but there are also other ways. For more information and to make a complaint online see the following link BOIUK complaints information. If you disagree with our final response, or we cannot respond within eight weeks and you do not accept our explanation, you may refer your complaint to the Financial Ombudsman Service (FOS) from www.financial-ombudsman.org.uk
- To provide you with the following minimum information in relation to your loan during the term of such loan:
- Timely, clear and adequate information that enables you to understand that, where you fail to make payments under the loan, the amount missed, what can be done to remedy, in what timescales, and the impact (if any) on future repayments;
- upon default by you, information about any proposed action we might take in respect of the loan, prior to taking such action;
- regular information about the loan (on at least an annual basis) in the form of a statement setting out details of the payment transactions on the loan during the period since such information was provided (or the Initial Drawdown Date, if no such information has been provided previously) and amounts outstanding under the loan; and
- information on options available to you for help and assistance, including sources of free independent advice.
If you require further information please read BBLS FAQ’s
Help on how to apply for a Bounce Back Loan
Before starting your application online you will need to have:
- Permission to apply from all account holders
- Name, Address, date of birth, email and mobile contact details for each Director / Member / Beneficial Owner over 20% and beneficial owner of the company / Guarantor / Authorised Signatories. This must be the same as what appears on your mandate
- Your Company registration number (if applicable)
- Your BOIUK Business sort code and account number
- Your estimated Annual Turnover
It is important you take time to complete the application form correctly ensuring all details including amounts requested are as required. There is only one application submission per business permitted and once submitted it cannot subsequently be rectified or amended.
All lending facilities are subject to the Bank’s lending conditions. Terms and conditions apply. Bank of Ireland UK adheres to the Standards of Lending Practice which are monitored and enforced by the Lending Standards Board.
Bounce Back Loan Scheme is delivered by the British Business Bank, through Bank of Ireland UK as an accredited lender.
The Bounce Back Loan Scheme (BBLS) 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). British Business Bank plc is wholly owned by HM Government and is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). Full details on BBLS and the list of participating lenders can be found on the British Business Bank website: www.british-business-bank.co.uk