Bounce Back Loan – Top-Up Key Features
The Bounce Back Loan Scheme (BBLS) is now closed to new applications, including applications for Top-Ups. BBLS applications received by 23.59 on 31 March 2021 can be processed through to 31 May 2021.
If you have a query about BBLS, or wish to discuss an outstanding application, please contact us on 0345 6005 204 in the usual way.
Recovery Loan Scheme
A new debt finance programme, the Recovery Loan Scheme (RLS), was announced by the Government in the Budget on 3 March 2021. The new Scheme, which will open on 6 April 2021, aims to support businesses affected by Covid-19 as they recover and grow following the pandemic. RLS supports a maximum facility size of up to £10m with minimum facility sizes starting at £1,000 for Invoice and Asset Finance and £25,001 for Term Loans and Overdrafts. Further information can be found on the British Business Bank website.
- If you have borrowed less than 25% of the annual turnover you stated on your original Bounce Back Loan Scheme application form, you are eligible for a Top-Up. The combined value of your original loan amount and Top-up cannot exceed 25% of your originally stated turnover, and is subject to an overall cap of £50,000.
- An interest rate of 2.5% per annum applies on the Top-Up. This is the same interest rate which applies to your existing Bounce Back Loan.
- The UK Government covers the interest on your original loan amount and the Top-Up up to the date on which your original interest free period on your existing Bounce Back Loan expires (i.e. 12 months after the initial draw-down of the original loan amount).
- No capital repayments are required up to the date on which your repayment holiday on your existing Bounce Back Loan expires (i.e. 12 months after the initial draw-down of the original loan amount).
- The term of the Top-Up will expire on the same date as the term of your original Bounce Back Loan.
- You may only apply for a Top-Up once.