On the 8th of February the Chancellor, Rishi Sunak, announced an add-on option to the 'Bounce Back Loans' previously offered to businesses.
Bounce Back Loan borrowers will now have the option to tailor their repayments according to their individual circumstances. Called the 'Pay As You Grow' scheme repayment flexibilities now include the option to delay all repayments for a further six months, an option to pause repayments from the first repayment and enable borrowers to extend the length of their loans from six to ten years (reducing monthly repayments by almost half.)
More than 1.4 million businesses will be able to benefit from these new Pay as You Grow repayment options. From the 8th of February lenders will begin reaching out to borrowers to provide information on repayment schedules and how they can access flexible repayment options if required.
The Chancellor of the Exchequer, Rishi Sunak, stated:
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."Rishi Sunak, Chancellor of the Exchequer