More than a million businesses that took out a Bounce Back Loan are to be offered more flexible repayment terms through a new ‘Pay as You Grow’ initiative.
They will now have the option of extending the length of the loan from six years to 10, projected to cut monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to businesses.
Coronavirus Business Interruption Loan Scheme lenders are also expected to be offered the chance to extend the length of their loans from a maximum of six years to 10 years. Details are yet to be confirmed.
In addition to a series of measures announced in Parliament this week, the Chancellor also said he would be extending applications for the government’s coronavirus loan schemes until the end of November.
As a result, more businesses will now be able to benefit from the Coronavirus Business Interruption Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme, the Bounce Back Loan Scheme and the Future Fund. This change aligns all the end dates of these schemes, ensuring that there is further support in place for those firms who need it, the government said.