Applied for the wrong amount of Bounce Back Loan can I re-apply ?

boxclever87

Hi Guys,
I recently applied for the Business Bounce back Loan which I assumed had to be max 25% of my turnover. I applied for 25k and received this, my turnover for end of 2019 was 110k (and the last years t/o was 150k), but after speaking to a few other business owners they told me they had all requested the 50k even though some of them never had a 200k t/o and they all received it instantly. Is there a way I could applhy for the other 25k ? It would give me some great capital to grow the business.
TIA for any advice

Jeremy535897

You cannot get another loan unfortunately:
"The business (and any wider group of which it is part) is not already in the process of applying for or has not already received a Bounce Back Loan Scheme facility."

From https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/bounce-back-loans/faqs-for-small-businesses/

You could try asking the bank you got the loan from, but that doesn't make you look good.

Grumpy_chap

It is only allowed to apply for one bounce back loan.

As Jeremy said, you could ask the bank to review, but I would not be hopeful.

The rules of the BBLS are that you can apply for 25% of the 2019 turnover.  You state this was £110k and you applied for £25k, which is only just under the 25%.

It is not clear which period you refer to having turnover £150k.  Is that 2018?  If so, then that is not the period that the BBLS is calculated against.  OR, is the £150 k for FY 2019-20?  If so, this could be an interpretation of the period that the 25% turnover is calculated against.

If you are just looking to declare £200k just so that you can get the full £50k loan, but in the knowledge that your turnover is not that high, that would be against the rules of the scheme and possibly deemed fraud.  Certainly, it is reasonable to expect that to be looked at in detail for any loans that are subsequently defaulted.

[Deleted User]

If those business owners applied for £50k then they did so fraudulently. You have to declare your turnover in the application process and separately stipulate the amount of the loan you wish to apply for. If they overstated their turnover to gain a larger loan then that is fraud and once more detailed checks take place later this year many of those people will find themselves in hot water. 

My business has been adversely affected by Covid-19 and although we have fairly large cash reserves taking the loan at 0% interest made sense. If we don't need it to support cashflow then I will just repay it in May 2021 and it won't have cost a penny, however with lots of companies going bust around us it may be very useful in picking up equipment at a hugely discounted rate and having an extra £50k kicking around will mean I can do that without needing to use the profit retained in the business. 

boxclever87

Thanks for all the feedback guys. I think the 2 guys I spoke to about were bending rules a bit and I felt that I had missed out on something, but I think I've probably made the right decision.
I am going to use it to pay off my van and business credit card then leave the rest incase I need it or buy some cheap stock if it's going.

mattyprice4004

You're better missing out on most things that bend the rules - these are often the things that come back and bite people on the ***  

Best to be upfront about it, and just claim your 25%.