Business Bounce Back Loan Scheme Extended!12th November 2020
Business Bounce Back Loan Scheme extended until 31st Jan 2021
- Including top ups (up to 25% of annual turnover)
Lenders offering bounce back loans (BBL) are now able to offer borrowers a ‘top-up’ if they originally took out less than the maximum amount.
The emergency scheme was unveiled in May to support smaller businesses during the pandemic, offering loans of up to £50,000, with the value of the loan fully guaranteed by the government.
The British Business Bank said the BBL top-up will be available from several large lenders from 10th November, with other lenders expected to make the top-up available in due course.
The Treasury was forced to introduce top-ups and extend the application deadline for the 100 per cent state-backed loans to January after England was placed into another lockdown last week.
The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The government guarantees 100% of the loan. There won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
Don’t worry if you already have a Bounce Back Loan but borrowed less than you were entitled to. You can now top up your existing loan to your maximum amount.
The maximum repayment term has been extended to 10 years (extended from 6 years previously). The first year is interest-free and the rest at 2.5%. You can repay at any time without paying a fee. You can now take a payment holiday and/or interest-only periods of up to six month.
What Does Martin Lewis Think?
Martin Lewis (The Money Saving Expert) said:
“While millions who work for themselves are covered by the Government’s income support scheme, huge swathes aren’t eligible, and don’t get any help”.
“Bounce back loans are a potential stopgap solution to the personal income hump caused by the coronavirus economic cataclysm. Clearly this is far from ideal – these are loans, the official support systems are non-repayable grants. However, until and if something else is developed, for many this is the only show in town”.
To apply for a bounce back loan, you’ll need to contact a bank directly and fill in a short online application. If you have any queries or would like to talk this through with a member of our team, please do not hesitate and call today.