Businesses that took out government-backed Bounce Back Loans to get through Covid-19 will now have greater flexibility to repay their loans, the government announced today (8 February).
- Bounce Back Loan borrowers will now have the option to tailor payments according to their individual circumstances
- Chancellor makes support even more generous with the option to delay all repayments for a further six months
- Pay as You Grow will be available to over 1.4 million businesses, which collectively took out nearly £45 billion through the Bounce Back Loan Scheme
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 also 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.
Continue to read the official guidance from HMRC Bounce back loan borrowers can delay repayments by extra six months
Many of our clients will soon be due to start repaying the BBL scheme. If you have any queries about the upcoming payments and the impact on your business, please contact a member of our team today on 01942 816 512 or request a call back here.