Bounce Back Loans


A debt solution may not be suitable in all circumstances. Fees may apply and will affect your credit rating

Bounce back loan solutions

Bounce Back Loans (BBL’s) were launched by the government in May 2020 in response to the Covid pandemic. They provided SME’s with a cash injection to help them survive the pandemic. The scheme offered very low-interest rates and were unsecured with no personal guarantees. If a company is wound up or liquidated, the directors will not be liable for these loans unless the loans have not been used to fund legitimate business expenses.

Did you accept a Bounce Back Loan?

Final Covid loans data revealed that over £80 billion of government support was provided through the pandemic. Over 1.6 million loans, including Bounce Back Loans and Coronavirus Business Interruption Loans, were approved between April 2020 and May 2021.

Government-backed loan schemes supported businesses of all sizes across the UK throughout the pandemic. Ranging from big manufacturers and exporters (who received the Coronavirus Large Business Interruption Loans , CLBILS) to innovative tech companies which recieved  Future Fund payments. Smaller businesses received a Bounce Back Loan and thousands now face difficulties with payments.

Figures released by the state-owned British Business Bank – which oversaw support schemes for UK firms during the Covid crisis – showed that, as of September 2021, there had already been defaults on loans worth £1.31billion under the bounceback loans scheme. This was exacerbated due to BBL fraud and the continued difficult trading conditions for small business following the easing of Covid restrictions. This was 2.4 per cent of all loans under the scheme.

Can Directors close a company with outstanding BBLs?

When operating a limited company, the business debts, including bounce back loans that the company cannot pay (after calculating assets and liabilities) are cancelled if the company is insolvent.

When closing a company with a bounceback loan outstanding, some risks may apply to company directors. 

  • If the bounce back loan money has benefited you, not the company, or it was fraudulently acquired.
  • If you guaranteed other debts of the business, other than the bounce-back loan (BBl’s were unsecured).
  • You have behaved in a way that contradicts your legal duties as a company director before the liquidation.

No matter what position you are in, please speak to a member of the TBDA team. It’s free & confidential and we can the team are available now help you now.

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