Businesses are now able to access a ‘top-up’ to an existing Bounce Back Loan, if they originally borrowed less than the maximum amount available to them.
The top-ups are only available from a borrower’s existing Bounce Back Loan lender.
What are the key features of the top-up scheme?
- One top-up per borrower, from their existing lender;
- The minimum top-up amount is £1,000; and
- The capital repayment holiday runs for 12 months from the initial drawdown date of the original Bounce Back Loan.
What is the value of the top-up?
The size of the top-up facility will vary between businesses, as it is dependent on the turnover amount certified in the original loan application and relative size of the original loan.
- A borrower can apply for a top-up that is the lesser of £50k or 25% of the annual turnover that was certified in the original Bounce Back Loan Scheme application;
- Minus the value of the original Bounce Back Loan.
Example
Certified turnover for the original loan:
£150,000
Total amount available (25% of turnover):
£37,500
Original Bounce Back Loan amount:
£30,000
Maximum Bounce Back Loan top-up (total eligible amount, minus original loan amount):
£7,500
How do you apply?
- Applications should be made through your original, accredited lender;
- The application form will require businesses to indicate the amount of top-up requested and re-provide certain declarations set out in the original loan; and
- Further details are available here, on the British Business Bank website.