The British Business Bank (BBB) administers the Bounce Back Loans Scheme (BBLS) on behalf of Government. The Bank works to accredit lenders for BBLS and provides them with a full (100%), government-backed guarantee against the outstanding balance of the finance (both capital and interest). Providing lenders with a 100% government-backed guarantee and standardising the application form is designed to produce a faster process, with many loans becoming available within days.
The lenders themselves, however, are responsible for the delivery of those products to their customers and for ensuring they have sufficient capital available to meet their lending forecasts.
BBB does set out a series of minimum requirements which prospective lenders must satisfy in their application. This list does include having sufficient capital, but it is not the only factor.
Factors taken into account during the accreditation process are: a track record with SMEs, provision of evidence-based forecasts, sufficient capital available to meet lending forecasts, a viable business model, robust operations and systems, and having all the necessary regulations, licenses, authorisations and permissions to operate the scheme.