Bounce Back Loan Scheme Top-Up

Support for businesses with an existing Bounce Back Loan

What is the Bounce Back Loan Scheme Top-Up?

The UK Government has announced a change to the Bounce Back Loan Scheme (BBLS) allowing customers with an existing Bounce Back Loan to apply for a top-up if they did not take the maximum amount available to them when they applied for their existing Bounce Back Loan.

If you are an existing Lloyds Bank Business Current Account customer and you do not already have a Bounce Back Loan, the deadline for new applications is 31 January 2021. Please visit the Bounce Back Loan Scheme (BBLS) for more information.

Eligibility

To be eligible for a top-up, you must:

  • Have an existing Bounce Back Loan provided by Lloyds Bank 
  • Be requiring funding as a result of the coronavirus pandemic
  • Have initially borrowed less than 25% of your annual turnover* and less than £50,000.

*In line with UK Government requirements, your top-up amount is determined by the turnover you stated in your original Bounce Back Loan application and cannot be changed.

Eligibility examples:

Example 1

A business with an existing Bounce Back Loan of £10,000 and a turnover of £100,000 p.a. has only taken a loan equal to 10% of their annual turnover.

They are now eligible for a Top-Up loan. As the total loan cannot be more than 25% of annual turnover, the maximum Top-Up they can request is £15,000.

Example 2

A business with an existing Bounce Back Loan of £25,000 and a turnover of £100,000 p.a. is not eligible for a Top-Up.

This business has already taken a loan equal to 25% of their business turnover, which is the maximum amount available to them.

Example 3

A business with an existing Bounce Back Loan of £50,000 is not eligible for a Top-Up.

Total Bounce Back Loan Scheme lending is capped at £50,000, even if this is less than 25% of your annual turnover.

Key features of the Top-Up

  • The top-up amount will be added on to your existing Bounce Back Loan and will increase the amount you will need to repay. 
  • The minimum top-up amount you can apply for is £1,000.
  • The combined value of your original loan and top-up cannot exceed 25% of your originally stated turnover, and is subject to an overall cap of £50,000.
  • An interest rate of 2.5% per annum applies to the top-up. This is the same interest rate as your existing Bounce Back Loan. 
  • The UK government will cover the interest payments on the top-up until the date that your existing Bounce Back Loan interest-free period expires (12 months after you received your initial Bounce Back Loan). 
  • No repayments are required until your capital repayment holiday expires on your existing Bounce Back Loan (12 months after your received your initial Bounce Back Loan). 
  • The term of the top-up will expire on the same date as the term of your original Bounce Back Loan.

Keep in mind

  • You can only apply for a top-up once.
  • Once you have submitted your top-up application, you cannot amend the amount. Please make sure the top-up amount is correct when you apply.
  • The deadline for top-up applications is 31 January 2021.
  • The top-up will not affect your original Bounce Back Loan term.
  • Your business will remain liable for repayment of the loan.

To apply for the Bounce Back Loan Scheme top-up, you will need:

  • Permission to apply for this top-up from all other account holders; and 
  • Your business account number and sort code. 
Apply online now

Frequently Asked Questions about the BBLS Top-Up

  • How much can I top-up my Bounce Back Loan by?

    If you have borrowed less than 25% of the annual turnover you stated on your original Bounce Back Loan application form, you are eligible for a top-up.

    The combined value of your original loan and top-up cannot exceed 25% of your originally stated turnover, and is subject to an overall cap of £50,000.

    Will my top-up allowance change if my turnover is now different to the original application?

    In line with UK government requirements your maximum top-up allowance is determined by the turnover you stated in your original Bounce Back Loan application and cannot be changed.

    Will my Capital Repayment Holiday be extended after I top-up my Bounce Back Loan?

    Your Capital Repayment holiday will continue to run for 12 months from the Initial Drawdown Date on your original Bounce Back Loan.

    For example, if the Initial Drawdown Date of the Original Bounce Back Loan was on 1 June 2020, and the drawdown date of the top-up  was on 1 November 2020, the Capital Repayment Holiday Period will remain at 31 May 2021.

    Can I apply for a top-up if I have partially repaid my BBL?

    Yes, you can apply for a top-up even if you have partially repaid your Bounce Back Loan.

    Please note your eligibility and maximum top-up allowance will be determined by the original Bounce Back Loan amount received and the turnover you stated in your original application.

    Can I apply for a top-up if I have fully repaid my BBL?

    Unfortunately, we are only accepting top-up applications from customers with an existing Bounce Back Loan.

    If you have fully repaid your Bounce Back Loan, you are not allowed to re-apply.

    Once I submit my application, am I able to change my top-up amount?

    Once you have submitted your top-up application you cannot amend this amount. Please make sure the top-up amount is correct when you apply.

    If I have refinanced a Coronavirus Business Interruption Loan (CBIL) to a BBL, can I apply for a top-up?

    Yes, if you now have an existing Bounce Back Loan provided by Lloyds Bank you can apply for a top-up.

    Can I apply for a top-up if I have a Coronavirus Business Interruption Loan (CBIL)?

    No, you must have an existing Bounce Back Loan provided by Lloyds Bank.

    Will my Bounce Back Loan and top-up Application be treated as two separate loans?

    The top-up advance and the Bounce Back Loan will be linked and effectively treated as one loan.

    When will I receive the top-up funds in my account?

    If successful, you will see your top-up funds in online banking a few days after the application was made.

    Will the top-up impact the cost of monthly repayments on my Bounce Back Loan?

    In borrowing more money as part of the top-up journey, the overall amount of your Bounce Back Loan will increase. When applying, you will need to review the costs associated with the repayment of the increased loan.

Some points you should know 

  • We will not charge you any fees in connection this loan (including if you are in breach of your loan agreement) or default interest (although if you miss a payment you will continue to owe interest at the rate of 2.5% per annum on the amount of the loan outstanding).

  • We will allow you to repay all, or part, of the loan early at any time as long as the amount you repay early is at least £2,000. We will not charge you any fees for making an early repayment.

  • We will keep you informed about the state of your loan and provide you with appropriate information, including:

    • A statement (at least once a year) setting out details of the payment transactions on the loan during the period since the last statement (or since we paid the loan to you if it is the first statement) and the amounts outstanding;
    • If you do not make a payment on time, timely and clear information about the amount of the missed payment, what you need to do to remedy this and by when and the impact this will have on future payments; and
    • Information on options available to you for help and assistance, including sources of free independent advice.

    We will provide you with information in a way which is clear, fair and not misleading.

  • If you take out a Bounce Back Loan, we will:

    • Monitor your repayment record and take appropriate action where there are signs that you may have repayment difficulties; and
    • Make appropriate adjustments to ensure that your circumstances are accommodated if we identify that you are or we have reason to believe that you may be vulnerable. 

    If you do not make payments on time or breach other terms of the loan, we may:

    • Require you to repay the loan (together with any interest you owe) immediately;
    • Disclose information about you and your account to licensed credit reference agencies (which may negatively impact your ability to obtain credit in future);
    • Bring legal action to recover the loan; and
    • Require you to pay any costs and expenses we incur in recovering the loan.

    We will always give you reasonable notice about any action we intend to take before we do so. This will include giving you an opportunity to remedy any breach (where it is capable of remedy) within a reasonable period. If a breach is remedied within this period we will not treat it as an event of default.

  • We will always make every effort to meet the high standards we have set ourselves, but if you ever feel we have fallen short of what you expect, or are dissatisfied in any other way, then please tell us. Please make sure your usual contact at the bank knows about it and tell them how you think it could be resolved. Alternatively, you can call or write to us using the following details:

    • Call our advisors on 0345 072 5555. We are available from 7am to 8pm Monday to Friday and 9am to 2pm on Saturday (closed on all UK public and bank holidays). To call us from outside the UK dial +441733 347 338 or from textphone 0345 601 6909
    • Raise your complaint with customer services – write to: The Manager, Lloyds Bank, Customer Services, Correspondence Centre, BX1 1LT.

    We'll usually respond to you within five working days in writing to tell you what we've done to resolve the problem, or acknowledge your complaint and let you know when you can expect a full response. We'll also let you know the name and contact details of the person or team dealing with your case.

    If you wish to make a complaint, you can find out more about our complaints procedure and how to contact us here.

    If you are dissatisfied with the way we have handled your complaint or if it has been over 8 weeks since you first raised your complaint with us, you may be able to refer your complaint to the Financial Ombudsman Service ("FOS"). The FOS will only consider your complaint once you've tried to resolve it with us, so please take up your concerns with us first and we'll do all we can to help.

    Further information on the FOS, including more detailed guidance on those who are eligible to complain, can be found on their website www.financial-ombudsman.org.uk or by telephoning 0800 023 4567 (if you’re calling from outside the UK call on +44 20 7964 0500) by emailing complaint.info@financial-ombudsman.org.uk or by writing to:

    Financial Ombudsman Service
    Exchange Tower
    Harbour Exchange Square
    London E14 9SR

The Bounce Back Loan Scheme is not subject to the usual consumer protections that apply to business lending, and as such will not have the benefit of the protection and remedies that would otherwise be available under the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974.

You should not apply for an amount that you cannot comfortably afford to repay now and in the future to avoid the possibility of legal action.

*Some activities/sectors are excluded, including the state funded education sector, insurance providers (other than insurance brokers), and deposit taking banks. You must also confirm during the application, that if your business was considered in difficulty on 31/12/19, that it is not in breach of de minimis State aid restrictions

The Bounce Back Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit british-business-bank.co.uk.