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Applying for the Bounce Back Loan Scheme

This guidance is for customers who manage their small business through an existing Halifax Personal Current Account. We are only able to support customers who had an account with us before 2 March 2020.

The deadline for all government-backed lending scheme applications has now been extended to 31 January 2021, as announced by the Chancellor of the Exchequer on 2 November 2020.

What is the Bounce Back Loan Scheme?

The Bounce Back Loan Scheme is one of a number of government-backed lending schemes designed to support businesses affected by COVID-19.  We are unable to offer the Bounce Back Loan Scheme directly. If you operate your business through an existing Halifax Personal Current Account, you can apply for the scheme with Lloyds Bank or Bank of Scotland. You’ll need to open a Business Current Account or Loan Servicing Account first.

Key features of the scheme

  • A 100% government backed initiative
  • You can apply for a loan between £2,000 and £50,000* (up to a maximum of 25% annual turnover), for 6 years
  • No repayments required for the first 12 months, and you won’t pay any charges should you decide to repay early
  • Interest rate fixed at 2.5%
  • Simple online application, with funds transferred to your new Business Current Account within days of being accepted.

Important

  • Your business will remain liable for repayment of the loan

To find out more about the scheme, please visit the British Business Bank website.

To be eligible for the Bounce Back Loan Scheme

You must:

  • Be UK-based
  • Have opened either a Lloyds Bank or Bank of Scotland Business Current Account or Loan Servicing Account
  • Require funding as a result of the coronavirus pandemic.

Industry eligibility:

The following industries are not eligible for the scheme:

  • A bank or building society
  • An insurance company;
  • Public sector organisation, or a state-funded primary or secondary school; or
  • An individual other than a sole trader or a partner acting on behalf of a partnership.

How do I apply?

  • If you operate your business through an existing Halifax Personal Current Account, you must first open either a Lloyds Bank or Bank of Scotland Business Current Account or Loan Servicing Account to be able to apply for the Bounce Back Loan Scheme.

You’re not required to maintain a Business Current Account to manage your Bounce Back Loan, and you can switch provider of your Business banking relationship at any time while retaining your loan.

We will only open a Business Current Account or a Loan Servicing Account if you:

  • Are managing your business through an existing Halifax Personal Current Account which was open before 2 March 2020
  • Are a sole trader or applying on behalf of a Partnership, Club, Society or Association
  • Were trading before 2 March 2020

We’ll check each of these as part of the application process. If you do not meet the above criteria then we are not able to open an account for you at this time.

We aren’t able to open an account for you if you are:

  • A Limited company
  • A Limited Liability Partnership
  • Managing your business through a Personal or Business account held with another provider

You will need to contact your main business account provider.

Next steps:

Apply for a Lloyds Bank Business Current Account or Loan Servicing Account

View accounts and apply

Apply for a Bank of Scotland Business Current Account or Loan Servicing Account

View accounts and apply

What happens after I apply for a Business Current Account or a Loan Servicing Account?

After you have applied for either a Lloyds Bank or Bank of Scotland Business Current Account or Loan Servicing Account, you will be able to apply for the Bounce Back Loan Scheme with your chosen provider.

You can apply for the scheme online on your chosen providers website, more information can be found here:

Lloyds Bank

Bank of Scotland

Lloyds Banking Group is a financial services group that incorporates a number of brands including Halifax, Lloyds Bank and Bank of Scotland. More information on Lloyds Banking Group can be found at lloydsbankinggroup.com.