If you've received a text about your BBL, you don’t need to contact us now. You’ll be able to apply for the Pay As You Grow options 60 days before your first repayment.
About Bounce Back Loans
Reminder of your Bounce Back Loan terms and conditions
When you applied for your Bounce Back Loan, you declared that you understood that:
Your Bounce Back Loan term
There are currently no changes to the 6 year term of your loan. Any Top-Up amount will expire on the same date as your original Bounce Back Loan.
The government recently announced changes that will allow borrowers to extend the term to 10 years.
We’re working with the British Business Bank to confirm how this will work. We’ll provide more details when they are available, there’s no need to get in touch at present.
Bounce Back Loan interest rate
Repaying your Bounce Back Loan
Pay As You Grow
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:
a) 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:
b) You could take a payment holiday for six months.
This option is available once during the term of your Bounce Back Loan.
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 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.
How Pay as you Grow could affect loan repayments
PAYG options may increase your repayments and the total amount you owe as interest costs increase if you repay your loan over a longer period.
| Monthly repayment | Total payable | Extra amount to repay | |
|---|---|---|---|
| Original loan amount - £10,000 | £177.47 | £10,648.42 | n/a |
| Capital repayment holiday* | £177.47 | £10,773.08 | £124.66 |
| Capital & Interest repayment holiday* | £179.69 | £10,781.16 | £132.74 |
| Extend loan term to 10 years | £103.50 | £11,177.52 | £529.10 |
* The monthly repayment amount shows the approximate monthly repayments after the 6 month Capital repayment holiday or Capital and Interest repayment holiday ends and loan repayments recommence. Examples also include a 6 month extension applied on the original loan term.
| Monthly repayment | Total payable | Extra amount to repay | |
|---|---|---|---|
| Original loan amount - £20,000 | £354.95 | £21,296.83 | n/a |
| Capital repayment holiday* | £354.95 | £21,546.15 | £249.32 |
| Capital & Interest repayment holiday* | £359.37 | £21,562.32 | £265.49 |
| Extend term to 10 years | £206.99 | £22,355.04 | £1,058.21 |
* The monthly repayment amount shows the approximate monthly repayments after the 6 month Capital repayment holiday or Capital and Interest repayment holiday ends and loan repayments recommence. Examples also include a 6 month extension applied on the original loan term.
| Monthly repayment | Total payable | Extra amount to repay | |
|---|---|---|---|
| Original loan amount - £35,000 | £621.16 | £37,269.46 | n/a |
| Capital repayment holiday* | £621.16 | £37,705.76 | £436.30 |
| Capital & Interest repayment holiday* | £628.90 | £37,734.05 | £464.59 |
| Extend term to 10 years | £362.23 | £39,121.32 | £1,851.86 |
* The monthly repayment amount shows the approximate monthly repayments after the 6 month Capital repayment holiday or Capital and Interest repayment holiday ends and loan repayments recommence. Examples also include a 6 month extension applied on the original loan term.
| Monthly repayment | Total payable | Extra amount to repay | |
|---|---|---|---|
| Original loan amount - £50,000 | £887.37 | £53,242.08 | n/a |
| Capital repayment holiday* | £887.37 | £53,865.37 | £623.28 |
| Capital & Interest repayment holiday* | £898.43 | £53,905.79 | £663.71 |
| Extend term to 10 years | £517.48 | £55,887.61 | £2,645.53 |
* The monthly repayment amount shows the approximate monthly repayments after the 6 month Capital repayment holiday or Capital and Interest repayment holiday ends and loan repayments recommence. Examples also include a 6 month extension applied on the original loan term.
Preparing for your repayments to begin
Support if you're struggling financially
Where you have had a direct financial impact caused by the coronavirus, there may be support available to you.
For more information about the government support available and how to access it, visit our government schemes page.
Other business finance support options
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.
Other business finance support options can be found on the British Business Bank Finance Hub pages.
Independent organisations that can provide free advice and support
If you believe that you are experiencing, or will experience, financial difficulties, there are independent organisations that can provide free advice and support on your financial needs, such as Citizens Advice, National Debtline, Business Debtline and PayPlan.
Details of how you can contact these organisations and other sources of free advice can be found on the Money Advice Service website: www.moneyadviceservice.org.uk
Visit our Frequently Asked Questions to find further guidance and support
We understand these are difficult times, and if you're in need of a helping hand we're here to support you.
Find guidance and support on our coronavirus hub.
We’re here to help
You do not need to contact us in advance. We will send you a repayment schedule outlining your options, around three months before your first payment is due.
However if you’re worried about your finances, the quickest way to get in touch is via your Relationship Manager. If you don't have a Relationship Manager, please refer to your usual Bank contact.
If you are struggling with your finances, you can get free debt advice.
We partner with PayPlan (a third party company), who can offer you free confidential advice for all of your debts.
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.
