HSBC Bounce Back Loan Repayment Extension in the United Kingdom in 2023 In April 2020, the government launched their Bounce Back Loan Scheme (BBLS) to help small and medium-sized businesses through the coronavirus pandemic. It allowed companies to borrow up to £50,000, depending on turnover, at a very low-interest rate and without having to pay a penny towards paying back the loan for 12 months. The Government worked with several leading financial institutions, including NatWest, Santander, TSB, Barclays and the HSBC Bounce Back Loan, to lend from £2,000 up to 25% of the business’s turnover (a maximum of £50,000). There were several benefits to the Bounce Back loan: ● ● ● ● ●
Businesses didn’t start making repayments for 12 months. The Government 100% guaranteed the loan and paid the first year’s interest to the lender. The low-interest-rate was fixed at 2.5% for the entire period of the loan without penalty. It was an unsecured loan and therefore businesses weren’t required to make any personal guarantees nor put up any collateral for the loan. There aren’t any early repayment charges, so a business can pay back the loan in less than six years without penalty.
As the pandemic continued into a second year and restrictions were still in place, the Chancellor launched a new repayment scheme for businesses and organisations that had secured a Bounce Back loan from the Government.