Bounce Back Loan – Top-Up Key Features
- 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 to 25% of turnover, subject to an overall cap of £50,000.
- The minimum amount of a Top-Up is £1,000.
- You may only apply for a Top-Up once.
- An interest rate of 2.5% per annum applies on the Top-Up. This is the same interest rate which applies to your existing Bounce Back Loan.
- Government covers the interest on the Top-Up up to the date on which the original interest free period on your existing Bounce Back Loan expires (i.e. 12 months after the initial draw-down of the original loan amount).
- No repayments are required up to the date on which the capital repayment holiday on your existing Bounce Back Loan expires (i.e. 12 months after the initial draw-down of the original loan amount).
- The term of the Top-Up will expire on the same date as the term of your original Bounce Back Loan.
You can apply for a Bounce Back Loan Scheme Top-Up if:
- Your business has already received a Bounce Back Loan from Bank of Ireland UK
- You are an existing Bank of Ireland UK customer
- You did not apply for the full amount you were eligible for on your original Bounce Back Loan
- You have not already applied for or received a Bounce Back Loan Top-Up
Further information and eligibility examples can be found here.
The Government has determined that loans made under the Bounce Back Loan Scheme:
- Do not benefit from the usual consumer protections that apply to business lending and you will not have the protections and remedies that would otherwise be available to you under the Consumer Credit Act 1974;
- Will not have credit or affordability checks conducted and lenders have no responsibility or duty of care for your decision to borrow; and
- Are based on you self-certifying your eligibility for the Scheme.
If you are in any doubt about the consequences of Bounce Back Loans not being regulated by the Financial Services and Markets Act 2000 or the Consumer Credit Act 1974, you should seek independent legal advice.
The 100% guarantee that is provided by the government under this scheme is to cover any losses made by lenders, and does not cover losses that you might suffer if you are unable to meet your payment obligations. You will remain responsible for repaying the whole of this loan at all times.
If you fail to make any repayments on a Bounce Back loan, we will be entitled to take action against you (or where there is more than one borrower, any one or more of you) to recover the full amount of the Bounce Back Loan. Missing repayments could result in legal proceedings, have a negative impact on your credit score and make it more difficult for you to obtain credit in the future.
You recognise that by providing inaccurate or incomplete information in your application that you will be regarded as attempting to gain, or gaining, a financial advantage dishonestly and as such will be liable to criminal prosecution for fraud under the Fraud Act 2006.
In line with the requirements of the Bounce Back Loan Scheme, set out below is the information in respect of our relationship with you, on matters to address during the life of the facility.
We have agreed:
- To monitor your repayment record during the life of the Scheme Facility and take appropriate action where there are signs of actual or possible repayment difficulties, in accordance with BBLS.
- Where we identify you as vulnerable (within the meaning set out in CONC 7.2, see https://www.handbook.fca.org.uk/handbook/CONC/7/?view=chapter ) or have reason to believe that you may be vulnerable, appropriate adjustments should be made to ensure your circumstances are accommodated throughout the duration of the Scheme Facility.
- Upon default by you, we agree that we will give you a reasonable period to remedy any breach and will not treat the same as an event of default if it is remedied by you within this period.
- We will not require you to pay any fees of any description (including on default) or any default interest (except that we may continue to charge interest at 2.5% per annum if the Scheme Facility is not repaid when due until such time as it is repaid).
- To pay due regard to your information needs and provide information to you in a way which is clear, fair and not misleading.
- Where you want to make a formal complaint to us, the easiest way is online but there are also other ways. For more information and to make a complaint online see the following link BOIUK complaints information. If you disagree with our final response, or we cannot respond within eight weeks and you do not accept our explanation, you may refer your complaint to the Financial Ombudsman Service (FOS) from www.financial-ombudsman.org.uk
- To provide you with the following minimum information in relation to your loan during the term of such loan:
- Timely, clear and adequate information that enables you to understand that, where you fail to make payments under the loan, the amount missed, what can be done to remedy, in what timescales, and the impact (if any) on future repayments;
- Upon default by you, information about any proposed action we might take in respect of the loan, prior to taking such action;
- Regular information about the loan (on at least an annual basis) in the form of a statement setting out details of the payment transactions on the loan during the period since such information was provided (or the Initial Drawdown Date, if no such information has been provided previously) and amounts outstanding under the loan; and
- Information on options available to you for help and assistance, including sources of free independent advice.
If you require further information please read BBLS FAQ’s
- You are not required to open or maintain a business current account with Bank of Ireland UK in order to obtain or manage a business loan or a business deposit account.
- You are able to switch your Business Current Account to another provider while retaining your business loan with Bank of Ireland UK.
- You are able to use another provider to manage your business banking while retaining your business loan with Bank of Ireland UK.
All lending facilities are subject to the Bank’s lending conditions. Terms and conditions apply. Bank of Ireland UK adheres to the Standards of Lending Practice which are monitored and enforced by the Lending Standards Board.
Bounce Back Loan Scheme is delivered by the British Business Bank, through Bank of Ireland UK as an accredited lender.
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.