Posted: Thu, 19 Nov 2020 11:00
From the 10th November, participating lenders in the Bounce Back Loan Scheme (BBLS) are able to offer smaller businesses across the UK a 'top-up' to their existing Bounce Back Loan if they originally borrowed less than the maximum amount available to them.
The Bounce Back Loan top-up is available from several large lenders with other lenders anticipated to make the top-up available in due course.
The top-ups are only available from a borrower's existing BBLS lender. A borrower can apply for a top-up that is for the lesser of £50k or 25% of the annual turnover the borrower certified in their original successful BBLS application form, minus the value of their 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.
Varying turnover amounts certified in original loan applications and relative size of original loans means the size of the top-up facility available to applicants will vary – examples:
Bounce Back Loan Scheme top-up features
How to apply
A short form template application form will be available from the Bounce Back Loan Scheme accredited lenders. Borrowers must complete this application form to be eligible for a top-up.
The top-up application form will require borrowers to indicate the amount of the top-up requested and re-provide certain declarations set out in the original Bounce Back Loan application form.