PARLIAMENTARY WRITTEN QUESTION
Bounce Back Loan Scheme (16 November 2020)

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the potential merits of enabling applicants for Bounce Back Loan top-ups to amend errors on their initial application where evidence for that error can be provided.

Asked by:
David Mundell (Conservative)

In order to support businesses as quickly as possible, the Bounce Back Loan Scheme (BBLS) was designed with a streamlined application process, which included an element of self-certification. This allows lenders to process applications at a much quicker pace than would be normally expected in the issuing of a commercial loan.

Whilst there is no mechanism in the scheme’s design to allow the borrower to revise errors made in the initial application once that application has been approved, businesses do have the option to refinance their existing BBLS facility using a Coronavirus Business Interruption Loan Scheme (CBILS) loan. The CBILS process is separate and allows businesses to get a Covid-support loan based on a fresh application.

Additionally, from November, 10 businesses have been able to ‘top-up’ their existing BBLS if they originally borrowed less than the maximum amount available to them. A borrower can apply for a top-up that is for the lesser of £50,000 or 25% of the annual turnover the borrower certified in their original successful BBLS application form, minus the value of their original loan.

Answered by:
Paul Scully (Conservative)
24 November 2020