Newspage asked six small business owners who took out a Bounce Back Loan about how it impacted them and their businesses four years on. One said: “Bounce Back Loan proved to be a massive misnomer. It has been more of a millstone around my neck”.
Another added: “I finally broke down and asked my parents to help me clear my BBL. I consider myself resilient but my debt to them now hangs over me and is stifling my new business.”
A third, a magician, said: “The Bounce Back Loan feels like a tight knot around my business’s neck, and has cast a dark spell over its future.”
Sarah Gatford, director head of interactions at Sarah Gatford Ltd said, “As the sole director of a micro limited company, I had been wholly excluded from other pandemic assistance programs like furlough payments.
“Bounce Back Loans of up to £50,000 seemed like they could be a vital lifeline to cover expenses and keep my business afloat until the situation improved. Bounce Back Loan proved to be a massive misnomer.
“It has been more of a millstone around my neck than any bounce-back opportunity. When the Bounce Back Loan Scheme launched, I spoke on local TV that loans were not genuine financial support, as they would eventually have to be paid back.
“However, with little revenue coming in during lockdowns and no other government assistance available, I felt I had no choice but to take one on to keep my business from going under and pay basic personal expenses.
“I was one of the ‘forgotten’, or ‘excluded’ 3 million small business owners who received no meaningful financial help when others got furlough payments. My BBL has definitely not helped me bounce back.”
Rachael Dines, founder and director at Shake It Up Creative said, “As a marketing company without premises, we fell through the cracks in 2020 when it came to significant financial support. I took out a £12k Bounce Back Loan in August 2020 and in May 2024 I just finished paying it back.
“In March 2020 I didn’t think it would be something I needed, I thought the company would ‘be ok’ and then my business partner resigned the following month taking 90% of our business with them three months later. By September, I had zero contracts.
“I couldn’t sleep at night for worrying and honestly, the loan saved my company. During the repayment period, it feels like a rock on your back, but little by little my company has recovered from both the Covid period and the business breakup and is now in a healthy position.
“We have had to continue to be careful about outgoings along the way. My advice to any small business owner would be to try and pay small extra amounts off when you’re able to, gradually shrinking the interest down and speeding up the process.”
Eddie Young, director at Eddie Young Magic said, “The Bounce Back Loan feels like a tight knot around my business’s neck and has cast a dark spell over its future.
“The Government shut down the entertainment and hospitality sectors first, and kept us under restrictions the longest. With no additional support from the Government since lockdowns ended, my business has effectively vanishished back to where it started, like a disappearing act gone wrong.”
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