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Barclays Support SMEs with Bounce Back Loan Scheme

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Barclays is open for business to accept applications for the Bounce Back Loan Scheme (BBLS) with 6,000 loans at a value of £200m processed by 2pm on the first day.

Hannah Bernard, Head of Barclays Business Banking, said:

“Since the scheme launched this morning, we’ve approved thousands of Bounce Back Loans to get hundreds of millions of pounds into the hands of small businesses.

“We recognise that getting funds quickly to SMEs all across the country is a priority right now, as businesses struggle with the impacts of the ongoing COVID-19 crisis.”

  • Due to the extremely high level of demand, a phased roll out of the scheme took place across the start of the morning, with all those registered on Barclays Online Banking now able to get access.
  • The scheme will help UK businesses who have been adversely impacted by coronavirus apply for loans between £2K-£50K, with funds in the customer’s account often within 24 hours.
  • Barclays Online Banking is the quickest way for customers to apply, with a straightforward and streamlined application process.

 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 and attest to the fact that the loan amount is no more than 25% of their 2019 turnover
  • If customers are unable to apply online, they should call to discuss next steps
  • An update on the Barclays Mobile Banking app will follow soon.

Existing measures in place for businesses:

  • Barclays has approved 4,361 Coronavirus Business Interruption Loans with a value of £835m (Total CBILS loans approved as of close of business on 28 April 2020. A further update will follow later this week)
  • Barclays is providing free everyday banking* and overdrafts to 650,000 customers with turnover up to £250k until July 2020
    • Free account fees
    • Free everyday banking transactions
    • No overdraft fees or interest charges on both arranged and unarranged overdraft facilities
  • Free helpline open Monday to Friday, 8am to 8pm offering guidance, support and information.  Available for the bank’s one million business banking customers
  • 12-month capital repayment holidays on existing loans over £25k
  • Increased or new overdraft facilities and other working capital solutions
  • Access to funding – 360,000 SMEs have pre-assessed lending limits which can be accessed via the Barclays app or online banking
  • In addition, the bank has an existing £14 billion lending fund which we launched in 2019 as part of a three-year commitment to help SMEs build resilience during uncertain times. More detail here: https://home.barclays/news/2019/04/sme-lending-fund/

For more information, visit: https://www.barclays.co.uk/business-banking/

*Free everyday banking: We will not apply fees to every day banking transactions including Cash, Cheques, debit card and electronic payments. Please note, there will still be charges for Barclays.Net account fees and for using any ‘additional services’ which are billed at the time of the transaction like CHAPS, but businesses with under £250k turnover do not use those facilities regularly.