Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy that applications for bounce back loans cannot be refused by lenders on the basis that the applicant is (a) a customer of another bank or (b) not using a business banking account.

The Bounce Back Loan Scheme (BBLS) has been introduced to help small and medium-sized businesses to borrow between £2,000 and £50,000. Businesses are not required to bank with their provider in order to be eligible for a loan under the Bounce Back Loans Scheme (BBLS).

It is also not a requirement of the Scheme for businesses to operate via a business account. However, some lenders may request that an applicant opens a business account in line with their standard policies. This is at the sole discretion of the lender. There are now 14 lenders accredited under the scheme, providing more choice for SMEs. Details of accredited lenders can be found on the British Business Bank’s website.

In order to apply for the scheme, businesses need to complete a short, simple online application form. A lender may consider paying funds into a personal current account if no business bank account is held, if it has been satisfactorily evidenced that the personal current account is being used for business purposes. In some cases, borrowers may need to include their 2018-19 HMRC self-assessment tax return alongside the form to verify their status as a business.