The government has announced that businesses that took out Bounce Back Loans to get through Covid-19 will now have greater flexibility to repay them.
The details provided on the Gov.uk website are as follows:
– The Chancellor’s Pay as You Grow repayment flexibilities now include the option to delay all repayments for a further six months, meaning businesses can choose to make no payments on their loans until 18 months after they originally took them out.
– The option to pause repayments will now be available to all from their first repayment, rather than after six repayments have been made.
– Pay as You Grow will enable borrowers to extend the length of their loans from six to ten years (reducing monthly repayments by almost half) and make interest-only payments for six months, in order to tailor their repayment schedule to suit their individual circumstances.
Pay as You Grow options will be available to more than 1.4 million businesses which took out a total of nearly £45 billion through the Bounce Back Loan Scheme and is in addition to the government covering the costs of interest for the first year of the loan.
For more information on the extension for repayments, click here.