Businesses that have previously taken Bounce Back Loans (BBL) will now be able to ‘top up’ and borrow a bigger amount.
Under the new adjustments, lenders that offer BBL will allow businesses to borrow more if they borrowed less than the maximum £50,000 when the scheme was originally unveiled in May.
According to the British Business Bank, several mainstream lenders have made the top-up available since Tuesday 10 November, with other lenders joining them in due course.
A business can only get a top-up from their existing BBL lender and can apply for whichever is the least – either £50,000 or 25% of their annual turnover, minus the value of the original loan.
For example, if a business had an annual turnover of £200,000 in their original application and had taken a BBL of £40,000 – this would equate to 20% of their turnover, meaning they can ask to borrow an additional £10,000, taking their BBL to the maximum 25% of their turnover.
A business can also only have one top-up, with the minimum amount being £1,000.
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