We have received information from the British Business Bank regarding a ‘top-up’ that our clients might be able to access if they have already taken advantage of the Bounce Bank Loan.
The Bounce Back Loan top-up will be available from several large lenders from today, 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.
Worked examples 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.
Further details and conditions are available on the Bounce Back Loan Scheme page on the British Business Bank website. The British Business Bank Press Notice can be accessed here.
|