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Rishi Sunak
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Bounce Back Loans repayments delayed by six months

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The government has announced greater repayment flexibility under its Pay As You Grow scheme for businesses that took out Bounce Back Loans.

12th Feb 2021
Staff Writer AccountingWEB
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Following pressure from Labour and business groups to increase coronavirus support for businesses, Chancellor Rishi Sunak has expanded the Bounce Back Loan Scheme’s (BBLS) Pay As You Grow repayment plan:

  • BBLS borrowers can now tailor payments according to individual circumstances
  • Businesses can delay all repayments for a further six months and extend their loan term
  • Pay as You Grow will be available to over the 1.4 million businesses that took out nearly £45bn in BBLS

Businesses can now opt out of making payments on BBLS 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 now allows loan-holders to extend the length of BBLS loans from six to ten years, and reduce monthly repayments by nearly 50%. The updated scheme also means businesses can make interest-only payments for six months, in a bid to tailor the scheme to match individual business needs.

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By Paul Crowley
13th Feb 2021 23:27

This just sounds like less repayments will be made.

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