Skip to main content

Bounce Back Loan Scheme (BBLS) (Scheme closed 31 March 2021)

The Bounce Back Loan Scheme (BBL) closed for new applications on 31 March 2021.

Where can I find out more information about Pay As You Grow options?

Visit our Pay As You Grow page.

What was the eligibility criteria for a Bounce Back Loan?

Eligibility for a BBL was based on the following Scheme criteria:

  • Your business is a UK-based business trading as at 1 March 2020;
  • Your business has been negatively affected by Coronavirus (COVID-19);
  • You derive more than 50% of your income from your business trading activity;
  • You do not have, or have not already, applied for a Bounce Back Loan from TSB or another lender;
  • You can self-declare that your business is not a Business in Difficulty as at 31 December 2019 (or if it is, that you are not in breach of De Minimis State aid restrictions); is not in bankruptcy; debt restructuring proceedings; or in liquidation; and
  • You can self-declare that you are not using the Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS) or the Bank of England’s Covid Corporate Financing Facility Scheme (CCFF), unless the Bounce Back Loan will be used to repay the whole of the CBILS, CLBILS or CCFF facility.

The following types of business were not eligible:

  • Credit institutions (falling within the remit of the Bank Recovery and Resolution Directive)
  • Insurance companies
  • Public sector bodies
  • State-funded primary or secondary schools

Bounce Back Loans were not offered to Trusts, Clubs, Societies and Charities.

What is a Bounce Back Loan?

Bounce Back Loans were offered from 4 May 2020 to 31 March 2021 for businesses impacted by Coronavirus (COVID-19), who needed to borrow from £2,000 up to £50,000 (up to a maximum of 25% of the business’ annual turnover). There were no forward-looking tests of business viability or complex eligibility criteria to be met.

  • BBLs had a 6-year fixed-term with the option to extend up to 10 years, no early repayment fees or charges and no arrangement fee
  • For the first 12 months the interest was met by the Government through a Business Interruption Payment and borrowers were not required to make any repayments
  • After the first 12 months until the end of the loan term a fixed interest rate of 2.5% per annum applied
  • Borrowers are responsible for all repayments/debt
  • Option for a capital repayment holiday (interest-only repayments for up to 6 months. Option could be used a maximum of three times over the term of the loan. The length of the loan would increase meaning more interest paid overall)
  • Borrowers could take a payment holiday for six months. This option was available once during the term of the Bounce Back Loan
  • No personal guarantee or security was required
  • The Government provided a 100% debt guarantee to lenders on these loans, but borrowers remain responsible for repaying their loan

Further information can be found in this guide to Bounce Back Loans produced by UK Finance - an industry body who represent the finance industry.

How much will the loan cost?

For the first 12 months of your loan you won’t be charged any interest. After the first 12 months until the end of your loan term an interest rate of 2.5% p.a. will apply. There is no arrangement fee.

The table below shows some examples of loan repayments.

The total amount repayable excludes Business Interruption Payment (BIP), which TSB will receive from the Government to cover the first 12 months of interest.

Borrowing amount First repayment amount* (month 13) Total amount payable Interest amount payable over the loan term
£10,000 £177 £10,647 £647
£20,000 £354 £21,294 £1,294
£30,000 £531 £31,941 £1,941
£40,000 £708 £42,588 £2,588
£50,000 £885 £53,235 £3,235

* We will send you a repayment schedule before your first repayment is due.

To find out about the costs of a Bounce Back Loan see our Lending Rates page.

Bounce Back Loan Top Ups

The Bounce Back Loan scheme was extended to allow businesses with an existing Bounce Back Loan to request a Top Up Loan from the lender which provided them with their existing loan. Top Up Loans were only available up to 31st March 2021 when Bounce Back Loan scheme ended and only one Top Up could be taken.

Bounce Back Loan Top Ups were available for customers who had been adversely affected by COVID, had already taken a Bounce Back Loan but not borrowed the full 25% of their previously declared business turnover up to a maximum of £50,000 across both original Bounce Back Loan and Top Up Loan. As with the original Bounce Back Loans, there was no forward looking testing of business viability.

If you have a Top Up Loan, this will run alongside your existing Bounce Back Loan, with repayments being due on the same day as your Bounce Back Loan. An interest rate of 2.5% per annum applies to Top Up Loans, which is the same interest rate as your existing Bounce Back Loan. Top Up loan interest was paid by the Government as state-aid up until the first anniversary of the opening date of the first Bounce Back Loan. Other terms are the same as your original Bounce Back Loan.

If you are eligible and select a term extension and / or a payment holiday under Pay As You Grow (PAYG) then these will apply to your original Bounce Back Loan and Top Up Loan. 

All reference to Bounce Back Loans on the remainder of this page will be referring to original Bounce Back Loan as well as Top Up Loan if taken.

Important Information

  • Borrowers could only have one Bounce Back Loan (including one Top Up, subject to criteria). If a business was part of a group, only one loan was allowed per group. Two or more businesses that are under common ownership or control (including by the same individual or group of individuals) are considered to be a group
  • Bounce Back Loans are not subject to the usual consumer protections that apply to business lending. This means you won’t have the benefit of the protection that would otherwise be available to you under the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974 (if applicable)
  • Borrowers weren’t able to have a CBILS overdraft and a Bounce Back Loan at the same time
  • If you do not repay your Bounce Back Loan it could negatively impact your credit score or rating with credit reference agencies and make it harder to get credit in the future
  • If you have taken out a Bounce Bank Loan with us, we will pay due regard to your information needs and we will provide information to you in a way which is clear, fair and not misleading
  • To find out how you can make a complaint to TSB see our Money worries page. You’ll also find details there about how you can contact the Financial Ombudsman Service for complaints we’re unable to resolve
  • In the event that you share an email account, correspondence related to your Bounce Back loan may be sent to this address

We will provide you with the following information about your Bounce Bank Loan:

  • A statement (at least annually), setting out details of payment transactions on your Bounce Bank Loan during the time since such information was last provided (or the date that you received funds under the loan, if no information has been provided previously) and amounts outstanding under the Bounce Bank Loan
  • If you miss a repayment on your Bounce Back Loan we will provide timely, clear and adequate information to ensure you understand the amount you have missed, what can be done to remedy it, when you need to make any missed payments by, and how this could affect your future repayments
  • If you default on your Bounce Bank Loan, we will provide you with information about any proposed action we might take, before we take it; and
  • The options available to you for help and assistance, including sources of free independent advice

We will also:

  • Pay due regard to your information needs and provide information in a way which is clear, fair and not misleading
  • Monitor repayments that you make during the life of your Bounce Bank Loan and take action to help you where there are signs of actual or possible repayment difficulties
  • Make adjustments to ensure that your circumstances are accommodated throughout the duration of your Bounce Back Loan, if we identify or believe you are vulnerable
  • Give you a reasonable period of time to remedy any breach if you default on your Bounce Back Loan. We will not treat the default as an event of default if you remedy the default within the period of time we give you
  • Not charge you any fees in relation to your Bounce Back Loan (including on default) or any default interest (except that we may continue to charge interest at the rate of 2.5% per annum if your Bounce Back Loan is not repaid when due until such time as it is repaid)


If you experience difficulties repaying your loan you can find helpful information on our Money worries page, together with information on how this may affect your credit score or rating.

To find out how you can make a complaint to TSB visit our complaints page.

Visit our Pay As You Grow page.

This is the amount that the government will pay for the BBL to cover the first 12 months of interest and fees payable.

This relates to financial assistance given by the government to companies or organisations.

Q. What affect will this have on my BBL facility?
A. There is no change to your facility held with TSB.

Q. Will this affect my Pay As You Grow options?
A. No, this is a notification and will not affect your facility, including Your Pay As You Grow options.

Q. Why was I not advised of this when I took out my BBL facility? (See answer below)
Q. If I repay my loan, will my data still be shared? (See answer below)
Q. I have already repaid my BBL facility, why am I receiving this letter? (See answer below)
Q. Why is my data being reported to the European Commission? (See answer below)

A: This is a government notification, you can find more information at BEIS Privacy Notice & BBB Privacy Notice.

For further information about data reporting to the European Commission and the UK Government please see the BEIS Q&As and the BBB Q&As.

You can contact BBB by emailing to for any questions you have about this letter.

For more frequently asked questions about your Bounce Back Loan, please visit the British Business Bank.

Pay As You Grow (PAYG)

Repaying your Bounce Back Loan

For existing BBL customers, you can find out more about the Pay As You Grow options by clicking the below button.

British Business Bank

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

Full details on BBLS and the list of participating BBLS lenders can be found on the BBB website at:

Working with British Business Bank logo