The government announced ‘Pay as you Grow’ to give more time and flexibility to repay the Bounce Back loans. Pay as you Grow gives businesses the option to tailor Bounce Back Loan payments based on individual circumstances.
The demand for Bounce Back loans has been high as businesses struggle to cope with the impact of Covid-19 and continuous disruption. Since May 2020, the Bounce Back loan has been available to 1.4 million businesses and £45 billion has been taken out collectively in Bounce Back Loans.
Chancellor Rishi Sunak said: ‘Businesses are continuing to feel the impact of extended disruption from Covid-19, and we’re determined to give them the backing and confidence they need to get through the pandemic. That’s why we’re giving Bounce Back Loan borrowers breathing space to get back on their feet, through greater flexibility and time to repay their loans on their terms.”
What are your 3 repayment options?
- extend the length of the loan from six years to 10 at the same fixed interest rate of 2.5%;
- reduce monthly payments with interest-only payments for six months – only available up to three times during the term of the loan
- take a repayment holiday for up to six months – only available once during the term of the Bounce Back Loan.
For Government Guidance on eligibility and how to apply visit GOV.UK