Bounce Back Loan – Top-Up Key Features

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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 925 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.