Businesses are being given more time to repay COVID-19 Bounce Back Loans.
Under the current scheme, businesses received loans interest-free loans for the first year. Thousands of small businesses are facing their first Bounce Back Loan payment in the months to come. However, with the extended period of lockdown affecting many businesses, the Government is making changes to its existing ‘Pay as you Grow’ (PAYG) initiative that is designed to give small businesses greater support to repay their loan, without it adversely affecting their recovery.
Under the new arrangements, businesses will have the option to:
- Extend the length of the loan from six years to 10
- Make interest-only payments for six months. You have the option to use this up to three times during the life of the loan
- Pause repayments entirely for up to six months.
The PAYG scheme gives borrowers the flexibility to tailor their Bounce Back Loan payment schedule to meet the needs of their business. The initiative will now be available to all borrowers from their first repayment, rather than after six repayments have been made. Businesses can choose to make no payments on their loans until 18 months after they originally took them out.
Have you taken advantage of BBLS or CBILS?
Although the Government is already looking at how existing borrowers make repayments, new claims can be made until 31st March. If you haven’t taken advantage of the BBLS yet now is the time to do so. Also, if you have previously had a BBL and now need more money there is still the opportunity to apply for a CBILS.
We can help you with this process if you would like. Or if there is anything you would like to discuss further just give us a call on 01332 292022 or drop us an e-mail. We’d love to grab a coffee and chat over zoom!