The government have now confirmed that businesses who took out government-backed Bounce Back loans, that provided extra support to get through the COVID-19 Pandemic, will now have greater flexibility regarding repayments
In addition to the Government covering all costs of interest for the first year of the loan. Those who received a Bounce Back Loan will now have the opportunity to amend payments and make six months of interest-only payments in accordance to their personal circumstances.
Not only this the Chancellor has also provided extra support with the Pay as You Grow repayments by enabling a delay of all repayments for a further six months, this therefore allows businesses to make no payment on their loan until 18 months after they were originally received.
The Pay as You Grow scheme will also allow for borrowers to extend the time period of the loan for six years to ten, as a result of this monthly repayments will be reduced by almost half.
These changes will be accessible to over 1.4 million businesses who took out a combined total of nearly £45 billion through the Bounce Back Loan Scheme.
The additional support of Pay as you Grow was first announced by the Chancellor in September, and will provide the option to tailor repayments to individual circumstances, offering greater flexibility and more time to repay the loan.
Lenders have already begun reaching out to those who borrowed through the Bounce Back Loan scheme to provide extra information on repayment schedules in place, and how to access the flexible repayment options.
Since 1992, D E Ball & Co Limited has been an independent business advisory service based in Telford, Shropshire. With their advisors working with businesses in the agriculture, services, construction and retailer sectors, they have a broad span of knowledge to offer. To see find out more about D E Ball and bounce back loans visit: https://www.deball.co.uk/