Bounce Back Loan Scheme Extended (updated 5.11.20)
This afternoon the Government have announced that they are extending the Bounce Back Loan (BBL) scheme to help small businesses.
A BBL' top up' is going to be available for small businesses who require additional funding to see them through the winter.
Earlier this year, eligible businesses were able to apply for a BBL of up to £50,000 or 25% of their turnover, which ever is less.
Many business, sensibly only borrowed what they felt they needed at the time and didn't borrow the maximum available to them. Now the second lock-down is upon us, the Treasury are giving business the opportunity to increase the amount initially borrowed earlier in the year, up to a limit of either £50,000 or 25% of annual turnover, which ever is the smallest of the two.
The closing date of the scheme has also been extended to 31 January 2021 (previously 30.11.20).
BBL's will continue to be a debt and business owners are responsible for the repayment of the debt. I would strongly urge anyone considering this option of funding to ensure they will have sufficient future cash flows to make repayments.
If you do feel a Bounce Back Loan 'top up' is the right option for your business, I would suggest you monitor your banks' website for further information as each bank will be releasing their own updates on how to apply etc.
Once we have further information on how the 'top up' will work, we will let you know.
For more details on Bounce Back Loans, please read here.