Bounce Back loans extension

sites • January 12, 2021

The Bounce Back Loans scheme was introduced in May 2020 to help provide businesses with financial support to businesses who were seeing losses in revenue and disruptions to their cashflow due to the COVID-19 Coronavirus pandemic. The scheme allowed small businesses to borrow from £2,000 and £50,000 and in many cases, they were able to access the cash within 24 hours of the loan being approved. An eligible business can apply for a bounce back loan online using a short, simple online form.

Initially the scheme was launched for a period of 6 months, but this has now been extended to 31 March 2021. The loans are 100% guaranteed by the Government and businesses are able to apply for up to 25% of their annual turnover. The Government pays the interest for the first 12 months and businesses do not need to make any repayments during this time. The interest rate will be 2.5% a year.

Businesses also now have the possibility to ‘top up’ their existing Bounce Back Loans if they need additional funding. However, this will only apply to businesses who borrowed less than their maximum loan allowance. If they wish to ‘top up’ their bounce back loan, businesses will be required to fill out a separate application form where they will reaffirm the declarations made on the original application form. It is only possible to make one ‘top-up’ application.

The scheme is available through a range of accredited lenders across the UK. Banks offering the scheme will not perform any forward-looking test of business viability or other complex eligibility criteria for these loans.

If you would like any further information, help or advice about bounce back loans, please get in touch

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