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Here we go again.....Lockdown 2.0

Good afternoon all,


A few updates for you this afternoon. Firstly, the Bounce Back Loan extension, or top-ups are now live. Secondly, there are two further Local Authority grants available for Lockdown 2.0.


Bounce Back Loan 'Top-Up'


Participating lenders in the Bounce Back Loan Scheme (BBLS) are now able to offer smaller businesses across the UK a ‘top-up’ to their existing Bounce Back Loan if they originally borrowed less than the maximum amount available to them.

The Bounce Back Loan top-up will be available from several large lenders from today, with other lenders anticipated to make the top-up available in due course.

The top-ups are only available from a borrower’s existing BBLS lender. A borrower can apply for a top-up that is for the lesser of £50k or 25% of the annual turnover the borrower certified in their original successful BBLS application form, minus the value of their original loan.


Worked examples


Under the Bounce Back Loan Scheme top-up, if a borrower had certified an annual turnover of £100,000 in their original application and taken a Bounce Back Loan of £20,000 (20% of that certified annual turnover), they can ask to borrow an additional £5,000 (5% of that certified annual turnover), taking their Bounce Back Loan to the maximum 25% of their originally certified annual turnover. Varying turnover amounts certified in original loan applications and relative size of original loans means the size of the top-up facility available to applicants will vary – examples:


a) Certified Annual Turnover for original loan b) Total amount available under BBLS (25% of turnover) c) Original Bounce Back Loan amount d) Maximum Bounce Back Loan Top-up: (total eligible amount minus original loan amount)


Example 1 a) £200,000 b) £50,000 c) £50,000 d) £0

Example 2 a) £200,000 b) £50,000 c) £10,000 d) £40,000

Example 3 a) £150,000 b) £37,500 c) £30,000 d) £7,500

Example 4 a) £100,000 b) £25,000 c) £20,000 d) £5,000

Example 5 a) £50,000 b) £12,500 c) £10,000 d) £2,500

Example 6 a) £20,000 b) £5,000 c) £4,000 d) £1,000

Bounce Back Loan Scheme top-up features

  • One top-up per borrower from their existing lender

  • Minimum top up amount – £1,000

  • The capital repayment holiday runs for 12 months from the initial drawdown date on the 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 run to 31 May 2021

How to Apply


A short form template application form will be available from the Bounce Back Loan Scheme accredited lenders. Borrowers must complete this application form to be eligible for a top-up.

The top-up application form will require borrowers to indicate the amount of the top-up requested and re-provide certain declarations set out in the original Bounce Back Loan application form. Further details and conditions are available on the Bounce Back Loan Scheme page on the British Business Bank website.


Local Restrictions Grant


Businesses that were open as usual, but were then required to close between 5 November and 2 December 2020 due to the national restrictions imposed by government may be eligible for LRSG (Closed) Addendum. Eligible businesses may be entitled to a cash grant from their local council for each 28 day period under national restrictions. When national restrictions are introduced and businesses are required to close, LRSG (Closed) is superseded by LRSG (Closed) Addendum. Eligibility

Your business may be eligible if it:

  • is based in England

  • occupies property on which it pays business rates (and is the ratepayer)

  • has been required to close because of the national restrictions from 5 November to 2 December 2020

  • has been unable to provide its usual in-person customer service from its premises

For example, this could include non-essential retail, leisure, personal care, sports facilities and hospitality businesses. It could also include businesses that operate primarily as an in-person venue, but which have been forced to close those services and provide a takeaway-only service instead. Eligible businesses can get one grant for each non-domestic property.


Businesses Excluded from the Fund


You cannot get funding it:

  • you can continue to operate during the period of restrictions because you do not depend on providing direct in-person services from your premises (for example accountants)

  • you have chosen to close, but have not been required to close as part of national restrictions

  • you have exceeded the permitted state aid limit

You must notify your local council if your situation changes and you no longer meet the eligibility criteria. If you Already get State Aid

LRSG (Closed) Addendum counts towards the total de minimis state aid you’re allowed to get over a 3-year period - €200,000.

If you have reached the de minimis threshold, you may still be eligible for funding under the COVID-19 Temporary Framework. The limit for this framework is €800,000.

Your local council will ask you to complete a declaration confirming that:

  • you will not exceed the relevant State aid threshold

  • you were not an ‘undertaking in difficulty’ on 31 December 2019 (this applies to the temporary framework only)

The undertaking in difficulty test does not apply to small and micro undertakings (less than 50 employees and less than €10 million of annual turnover or annual balance sheet), unless any of the following apply:

  • the business is already in insolvency proceedings

  • the business has received rescue aid that has not been repaid

  • the business is subject to a restructuring plan under state aid rules


What will You Get


The grant will be based on the rateable value of the property on the first full day of restrictions.


If your business has a property with a rateable value of £15,000 or less, you may be eligible for a cash grant of £1,334 for each 28-day qualifying restrictions period.


If your business has a property with a rateable value over £15,000 and less than £51,000, you may be eligible for a cash grant of £2,000 for each 28-day qualifying restrictions period.


If your business has a property with a rateable value of £51,000 or above, you may be eligible for a cash grant of £3,000 for each 28-day qualifying restrictions period.


How to Apply


Visit your local council’s website to find out how to apply: Additional Restrictions Grant The Additional Restrictions Grant (ARG) provides local councils with grant funding to support closed businesses that do not directly pay business rates as well as businesses that do not have to close but which are impacted. In addition, larger grants can be given than those made through LRSG (Closed). Local councils can determine which businesses to target and determine the amount of funding from the ARG. Eligibility Local councils have the freedom to determine the eligibility criteria for these grants. However, we expect the funding to help those businesses which – while not legally forced to close – are nonetheless severely impacted by the restrictions. This could include:

  • businesses which supply the retail, hospitality, and leisure sectors

  • businesses in the events sector

  • business required to close but which do not pay business rates

Businesses Excluded from the Grant

You cannot get funding it:

  • your business is in administration, insolvent or has been struck off the Companies House register

  • you have exceeded the permitted state aid threshold

You must notify your local council if your situation changes and you no longer meet the eligibility criteria. For example, you become insolvent. If you Already get State Aid ARG counts towards the total de minimis state aid you’re allowed to get over a 3 year period - €200,000. If you have reached the de minimis threshold, you may still be eligible for funding under the COVID-19 Temporary Framework. The limit for this framework is €800,000. Your local council will ask you to complete a declaration confirming that:

  • you will not exceed the relevant state aid threshold

  • you were not an ‘undertaking in difficulty’ on 31 December 2019 (this applies to the temporary framework only)

The undertaking in difficulty test does not apply to small and micro undertakings (less than 50 employees and less than €10 million of annual turnover or annual balance sheet), unless any of the following apply:

  • the business is already in insolvency proceedings

  • the business has received rescue aid that has not been repaid

  • the business is subject to a restructuring plan under state aid rules


How to Apply

Visit your local council’s website to find out how to apply.

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