Small Businesses Offered Top-Up to Existing Bounce Back Loans
If you are a smaller UK business who didn’t borrow the maximum amount available on the Bounce Back Loan Scheme (BBLS) earlier this year you may now be eligible for a one-off “top-up” on your existing loan.
Dated: 12 November 2020 Author: Daran Harding, Business Development Director
The British Business Bank announced yesterday that this is available from several large lenders now and an anticipation that other lenders will be available in due course.
Please note that you can only top-up via your existing (BBLS).
How much can I top-up by?
You can apply for a top-up that is for the lesser of £50k or 25% of the annual turnover you certified in your original successful BBLS application, minus the value of your original loan.
Under the Bounce Back Loan Scheme top-up, if a borrower had certified an annual turnover of £100,000 in their original application and taken a Bounce Back Loan of £20,000 (20% of that certified annual turnover), they can ask to borrow an additional £5,000 (5% of that certified annual turnover), taking their Bounce Back Loan to the maximum 25% of their originally certified annual turnover.
Bounce Back Loan Scheme Top Up Requirements
- One top up from your existing lender
- There is a minimum top up of £1,000
- Capital repayment holiday is for 12 months from the initial drawdown date on your original bounce back loan.
How do I apply?
Your Bounce Back Loan Scheme lender can provide you with a short application form, which you need to complete to be eligible for a top-up. Please note that on the application form you will need to indicate how much you wish to top-up by and re-provide certain declarations as per your original bounce back loan application.
Further information can also be found here: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/
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