Tuesday, 3 November 2020

Top up your Bounce Back Loan

The Government has announced that they plan to extend the application deadline for loan guarantee schemes – that is, the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, and Coronavirus Large Business Interruption Loan Scheme – to the end of January 2021. This will give businesses two extra months to make loan applications (relative to the current deadline of 30th November).

The Government will also adjust the Bounce Back Loan Scheme rules to allow those businesses who have borrowed less than their maximum (i.e. less than 25% of their turnover) to top-up their existing loan. 

Businesses will be able to take-up this option from next week; they can make use of this option once. The Government understands that some businesses didn’t anticipate the disruption to their business from the pandemic would go on for this long; and it is hoped this amendment will ensure that they are able to benefit from the loan scheme as intended. 

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