Bounce Back Loan scheme

Is your business eligible for Pay as you Grow? 

You can apply for Pay as you Grow in Online Banking or the Barclays app if

• You currently have a Bounce Back Loan with us
• You’re at least nine months into your initial payment holiday – this will take effect when your payment holiday ends
• You’re listed on the mandate and have full access to Online Banking or the Barclays app. You also need to be authorised to make changes on behalf of the business account

You can apply for any of the Pay as you Grow options, or all of them, once they’re available for your loan. There are no additional fees and this doesn’t impact your ability to pay off the loan early. 

Using these options won’t affect your credit score or negatively affect your creditworthiness, provided you keep up with your repayments. We may use previous requests, including those for Pay as you Grow options, to help us assess affordability in future lending applications. Our ‘Build your business credit score’ page has more information, including how to keep your business credit score healthy.

If you want Pay as you Grow to start from your next loan repayment, you need to apply at least 20 days before that repayment is due.

The wording below is from the British Business Bank, and covers the repayment of your Bounce Back Loan. We’ll send you regular reminders to let you know when your repayments will start and how much you’ll pay. There’s no need to contact us, we'll contact you with information on your repayments and your options ahead of your first repayment.

Repaying your Bounce Back Loan

You received a payment holiday for the first year of your loan, with the interest being paid by the government via a Business Interruption Payment. After the first 12 months, you’ll need to start making monthly repayments to repay the amount you borrowed, plus interest from the date your repayment holiday ends.

We’ll send you a repayment schedule outlining your options, around three months before your first payment is due. Please note, you don’t need to contact us in advance.

If you no longer need the loan, you can choose to pay it back early. You’ll then pay less interest. There are no early repayment charges and you won’t pay any interest if you pay the full amount before the end of your initial 12-month repayment holiday.

Or you can make a one-off repayment, as well as additional payments on a regular basis, and doing so will also help save you money on your interest payments. 

Your other repayment options

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.

You can apply for Pay as you Grow when you’re nine months in to your initial payment holiday (this will then take effect when your payment holiday ends).

What are the Pay as you Grow options?

Option 1a: You could reduce your monthly repayments for six months by paying only the interest.

• 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
• This option is available up to three times during the term of your Bounce Back Loan
• You can also extend the term of your loan by six months at the same time (to a maximum of 10 years) to keep your repayments similar to what they are now

Option 1b: You could take a payment holiday for six months.

• 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
• This can be used once during the term of your Bounce Back Loan
• This means you make no payments for six months (capital or interest). You’ll still be charged interest during the six-month repayment holiday and this’ll be added to the amount of your loan. As a result, your remaining loan repayments will go up
• You can also extend the term of your loan by six months at the same time (to a maximum of 10 years) to keep your repayments similar to what they are now

Option 2: You could request an extension of your loan term from six years to 10 years at the same interest rate of 2.5%.

• Extending to 10 years would reduce your monthly payments
• You’ll accrue more interest, so the total amount repayable would increase, unless you repay early

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.

You can use option 1 and 2 together if you need to. Both option 1a and 1b will be available throughout the course of your loan term.

Our Bounce Back Loan repayment calculator can help show you the impact of the Pay as you Grow on your monthly repayments and the overall amount you’ll have to repay. This information can be tailored to your individual circumstances.

We’re here to help

You don’t 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.

If you’re worried about your finances, please visit our money management hub where you can find articles on cashflow including tools and calculators to help you plan and manage your finances.

You can also contact the following organisations for free advice

Business Debtline – chat online or call 0800 197 6026 

National Debtline – if you live in England, Scotland or Wales call 0808 808 4000

Citizens Advice – online or visit your local Citizens Advice centre  

Other business finance support options
In addition, the British Business Bank are aware businesses may be worried about their finances or how to manage repayments of their Bounce Back Loan. They have a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

The Bounce Back Loan scheme closed for new applications and top-ups on 31 March 2021.

The below information applied before that date.

If you started your application before 31 March, we will be in touch shortly – there’s no need to call us.

You can apply for a loan if your business

• Is based in the UK
• Has been negatively affected by the coronavirus situation
  
• Was established on or before 1 March 2020
  
• Is not in bankruptcy, liquidation or undergoing debt restructuring

Ineligible businesses

The following businesses aren’t eligible to apply

• Banks, insurers and reinsurers (but not insurance brokers)
• Public-sector bodies
• State-funded primary and secondary schools

If you’re not eligible, get in touch with your usual Business Banking contact to talk about borrowing options that could be right for you.

To apply for a Bounce Back Loan with us, you’ll need to be a Barclays Business customer, or have a personal current account with us that was opened on or before 1 March 2020. If you are not already a customer but have a new customer appointment in the diary before the end of the scheme on 31 March 2021, we’re able to offer a Bounce Back Loan if you meet the eligibility criteria.

There are no further new customer appointments available between now and the end of the scheme. If you run your business through accounts with another bank, please contact them to discuss applying for a Bounce Back Loan.

You’ll also need to provide proof that your business was trading through that personal account on or before that date and be able to provide the additional documents on this list.

If you run your business through accounts with another bank, please contact them to discuss applying for a Bounce Back Loan.

Further information

The Bounce Back Loan scheme closed for new applications and top-ups on 31 March 2021. If you started your application before then, we’ll be in touch shortly – there’s no need to call us.

• Businesses from all sectors can apply for a facility¹
• Interest rate fixed at 2.5%
• No principal repayments for the first 12 months
• No set up or application fees
• No early repayment fees
• No personal guarantees are allowed, and no recovery action can be taken over a principal private residence or principal private vehicle
• You’re responsible for repaying 100% of the loan. Where default occurs, we follow our standard commercial recovery procedures (including the realisation of security) before we make a claim against the government's guarantee for any shortfall. Loans are available to most business sectors, but restrictions apply
• Term extensions to ten years will be available as part of a flexible repayment plan (subject to application) – we’ll update this page when we have more information

You can apply to borrow up to 25% of your turnover in the 2019 calendar year, up to a maximum of £50,000.

If your business was established after 1 January 2019, you should apply the 25% to your estimated annual turnover from the date you started your business.

Before you apply please read this important information.

You may be able to apply to refinance existing Coronavirus Business Interruption Loans, the Coronavirus Large Business Interruption Loans, or Covid Corporate Financing Facility loans into a Bounce Back Loan. Eligibility criteria apply.

We'll soon be contacting customers who could be affected to discuss this option.

Bounce Back Loan scheme top-ups

If you didn’t borrow the maximum amount you're eligible for under the Bounce Back Loan Scheme, you may be able to apply for a top-up. This could enable you to increase your loan to 25% of the annual turnover stated in your original Bounce Bank Loan application, up to a maximum of £50,000.

To apply for a top-up, please log in to Online Banking, go to ‘Product and services’ and select ‘Business loans’.