BUSINESS
Top up your
Bounce Back Loan
The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
THE LATEST UPDATES
If you already have a Bounce Back Loan but borrowed less than you were entitled to, you can now top up your existing loan to your maximum amount. You must request the top-up by 31 January 2021.
FAQs.
ELIGIBILITY
You can apply for a loan if your business:
- is based in the UK
- was established before 1 March 2020
- has been adversely impacted by the coronavirus
HOW TO APPLY
There are 28 lenders participating in the scheme including many of the main retail banks. You should approach a suitable lender yourself via the lender’s website.
The lender will ask you to fill in a short online application form and self-declare that you are eligible.
The lender will decide whether to offer you a BBL or another type of finance and you’ll be responsible for repaying 100% of the amount borrowed.
HOW LONG IS THE LOAN FOR?
The length of the loan is 6 years, but you can repay early without paying a fee. No repayments will be due during the first 12 months.
Before your first repayment is due, your lender will contact you about further options to:
- extend the term to 10 years
- move to interest-only repayments for a period of 6 months (you can use this option up to 3 times)
- pause your repayments for a period of 6 months if you have already made at least 6 repayments (you can use this option once)
WHO CANNOT APPLY?
Businesses from any sector can apply, except:
- banks, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
You also cannot apply if you’re already claiming under:
- Coronavirus Business Interruption Loan Scheme (CBILS)
- Coronavirus Large Business Interruption Loan Scheme (CLBILS)
- COVID-19 Corporate Financing Facility
If you’ve already received a loan of up to £50,000 under one of these schemes you can transfer it into the Bounce Back Loan scheme. You have until 31 January 2021 to arrange this with your lender.
