Covid-19: Bounce Back Loan top-up option introduced

funding

Business owners who have already taken out a Bounce Back Loan, but borrowed less than they were eligible for, will have the option to top it up from today (10 November).

 

The government has acknowledged that some businesses may not have anticipated the disruption to their business from coronavirus would go on for so long, so may need to access additional funding. The move is part of a government package to support businesses through the next few months.

 

The scheme, which was first introduced in May 2020, offers businesses loans from £2,000 up to threshold of 25% of turnover, with the maximum loan available capped at £50,000.

 

Businesses will have an one-time-only option to top up their existing loan to the maximum amount allowed.

 

The deadline for applying for the scheme or a top up has been extended to the end of January 2021.

 

This extension also applies to the Coronavirus Business Interruption Loan Scheme, Future Fund, and Coronavirus Large Business Interruption Loan Scheme.

 

It is estimated that to date more than 1m small and medium-sized enterprises (SMEs) have been lent a total of £38bn through the Bounce Back Loan scheme.