Government extends Covid-19 lending schemes

The two-month extension applies to Bounce Back Loans (BBLS), Coronavirus Business Interruption Loans (CBILS), and the CLBILS scheme for larger firms.

Businesses which have borrowed less than the maximum amount under the Bounce Back Loan Scheme – 25% of their turnover to a limit of £50,000 - will be able to apply for a top-up under the new rules.

The top-up facility will be available on a one-off basis from next week.

Stephen Pegge, managing director of commercial finance at UK Finance, commented: “The banking and finance industry is providing unprecedented support to help businesses throughout these tough times, with over 1.4 million firms receiving financing so far under the government-backed lending schemes.

“The extension of the application deadline to January 31 2021 will provide additional time to enable more businesses to access the finance they need, including those impacted by the latest lockdown restrictions.

“In addition, firms that have not yet borrowed their maximum under the Bounce Back Loan scheme will be able to top up their loan should they need more finance to help them through the difficult weeks ahead.

"We now look forward to working with the Treasury and British Business Bank to finalise the details of these changes over the coming week."