Bounce back Loan Scheme:
This morning, Barclays launched the new Bounce Back Loan Scheme (BBLS) for small businesses adversely impacted by coronavirus. We have already processed thousands of applications for our customers, approving several hundred million pounds worth of loans.
The Bounce Back Loan Scheme is available through our online banking service and customers can have funds in their account often within 24 hours. Due to the extremely high level of demand, we implemented a phased roll out of the scheme throughout the morning, meaning that some customers may not have been able to immediately apply but the rollout was complete by lunchtime. Other channels, such as our Mobile Banking app and a process for applying via our telephony channels will be available in the coming days.
We would encourage you to refer constituents with any queries to our dedicated website.
Key details of the scheme:
- Business banking and self-employed personal customers can borrow from £2,000 up to £50,000 for a fixed term of six years. The interest rate will be 2.5%.
- The Government will guarantee 100% of the loan and customers will not pay any interest or capital for the first year.
- To apply, customers should visit Barclays Online Banking.
- The application form will ask customers to consider a series of declarations.
- If customers are unable to apply online, they should call to discuss next steps.
For small business owners with turnover under £250,000, we are waiving everyday banking fees and charges as well as any overdraft charges. This means over 650,000 SMEs will benefit from free everyday banking and no overdraft fees or interest to pay until the beginning of August. This applies to customer charges that have been accrued since 13 March 2020.
Also, following the changes to the government’s Coronavirus support schemes for businesses announced by the Chancellor, we are going further and will not require any personal guarantees on Coronavirus Business Interruption Loan Scheme loans.
We welcome the changes to the CBIL Scheme and the Chancellor’s announcement regarding the introduction of the Coronavirus Large Business Interruption Loan Scheme (CLBILS). This will enable us to provide additional support to those businesses that previously fell outside of the Government’s schemes and we will be working closely with the Government to finalise the terms, with a view to this new scheme for larger businesses being open in the next few weeks, as indicated by the British Business Bank. We are also a strong participant in the Corporate Commercial Finance Facility, administered by the Bank of England, helping the largest businesses to access the finance they need.
These changes will, we hope, give business owners the support they need and confidence to use the CBIL scheme. It will also simplify the application process and enable us to more quickly help businesses to access the support they need at this critical time. We have been dealing with thousands of queries and applications for customers, while at the same time, managing reduced capacity in our contact and processing centres due to lower staff numbers. We are already working hard to implement the changes to the scheme and to ensure our relationship managers, branch and call centre colleagues are trained, so please ask businesses to bear with us while we put the necessary changes in place. We are aware that high call volumes and fewer call handlers are causing call waiting times to be considerably longer than normal and we apologise for any frustration or anxiety this might be causing.
