Bounce Back Loan increase

AJHolmes

I took out a bounce back loan relatively early on and decided to take out the barest minimum - to be prudent and not have a large loan to repay. I was well under the threshold and well under the maximum my turnover would allow.

I now find that the 'bounce back' is barely getting off the ground and business whilst improving is going so slow that I would like to increase my borrowing - an increase which would still keep me well below my threshold based on turnover.

We are not allowed to take any further borrowing or apply for a second bounce back loan as it is currently set out.

I find this very frustrating because

a) It really encouraged you to take the maximum possible whether you needed to or not initially

b) It forced you to make a decisions using a crystal ball on how you thought an unprecedented global pandemic 'may' affect your business

c) You have to make an assumption on how quickly things will bounce back with no room for error

Clearly things are not bouncing back and this will continue to affect business for at least the rest of 2020.

Does anyone know a way of putting pressure on to allow 'top-ups' to the original loan or at least agree with me that further assitance is required?

dunstonh

Does anyone know a way of putting pressure on to allow 'top-ups' to the original loan or at least agree with me that further assitance is required?

No. As it stands it is a once only thing.

There also appears to be an acceptance now that businesses will be allowed to fail rather than add to new widespread funding.

jfinnie

If you need enough money and meet the eligibility, you could re-finance a BBLS with a CBILS perhaps?

Grumpy_chap

There is no facility for a second BBL.
What did you apply for originally, and what would you apply for if you did so now?
I think the BBLS documentation pretty much inferred to apply for the allowed loan as it is risk free and cost free if not needed and repaid within the 12-month period.  The maximum permitted is 25% (three months) turnover and if a business really needed less than this amount to support liquidity in the short-term, it was probably not in need of anything at all.

mattyprice4004

The loan was 0% interest for the first year; I'm sorry but it was a poor business decision not to take out the maximum you could and simply pay back what you didn't need at a later date. 
This would have cost exactly nothing, and the cash would be there ready if you needed it. 

Did your accountant / book-keeper not advise this approach? 
No 'further assistance' or lobbying is needed; anyone business-savvy would have taken the most they could and simply repaid what they didn't need. 

Jonesy1977

I hate to say it but as other posters have said, there is nothing that you can do at this point.   As you yourself said
"You have to make an assumption on how quickly things will bounce back with no room for error"  - except there was room for error, you could and arguably should have overestimated and paid back what you did not need, the formula was there, the safety net was there.

williecity

I think you can return the money and cancel the application. You can then open with another bank.

Sibbers123

williecity said:

I think you can return the money and cancel the application. You can then open with another bank.

You think wrong.

williecity

A lot of people want to lend more than they applied for initially and it just makes sense to allow them if entitled afterall it should be equal rights for all and not a luck based thing.

Grumpy_chap

williecity said:

I think you can return the money and cancel the application. You can then open with another bank.

No you can't.
Luck does not come in to it.

haras_n0sirrah

williecity said:

A lot of people want to lend more than they applied for initially and it just makes sense to allow them if entitled afterall it should be equal rights for all and not a luck based thing.

It is taking people months to get the bbl and is severely tying up lenders time a resources to process the applications. If people could keep going back for more then that would cost even more to administer - the lenders aren't due to make very much money out of this. 2.5% interest after 1 year and a lot of these will default and they will have the expense of chasing before falling bank on the guarantee. Once you factor in the admin involved there probably is no profit for them