The Bounce Back loan scheme has been one of the most impactful coronavirus business support measures announced by the chancellor.
In fact, they’ve lent around £40 billion at the time of writing!
Many small business owners borrowed at the beginning of lockdown but perhaps didn’t borrow enough, and have been realising this over the past few months. Unfortunately, the scheme was a one time deal – you couldn’t go back for ‘seconds’.
This issue has been recognised now by the government. They’ve now allowed banks to ‘top them up’ if you didn’t borrow the maximum before.
What is a Bounce Back Loan?
If you’ve not heard of the scheme, it allows you to borrow from your bank up to £50,000 or 25% of your turnover, whichever is lower, over 6-10 years at 2.5%. The year 1 interest is paid by the government and repayments start after the first 12 months.
You can now also have interest free periods and a payment break.
How do I apply for the top-up?
This is done via your online banking directly with your bank. This isn’t something anyone else can do for you, you need to approach your bank directly.
The application process itself is a simple online form.
As a practical note, some banks will auto-fill your turnover from your first application, so may automatically calculate the amount you could borrow.
It should be said, sadly there are still those owners who are struggling to get a loan, as most banks won’t deal with new customers looking for a BBL. At the time of writing it’s only Starling Bank that is doing this.
From the start, some owners have found BBLs incredibly easy to obtain through their bank, whilst some have really struggled. If you are struggling, persevere with the bank and try and find out WHY before calling it a day. Often it’s a simple problem with say your accounts and or info not being up to date with Companies House.