The government has announced that anyone who made a claim for the Bounce Back Loan Scheme (BBLS) can delay repayments by an extra six months.
The scheme was introduced shortly after the UK went into its first lockdown last year in a bid to help small and medium-sized businesses struggling through coronavirus. SMEs have been able to borrow between £2,000 and £50,000 with no fees or interest to pay for the first 12 months.
If you haven’t already made a claim but would like to, applications will stay open until 31 March 2021. If you have taken out a loan but borrowed less than you were entitled to, you can top up your existing loan to your maximum amount. Again, this must be done by 31 March.
Repaying the Bounce Back Loan
Anyone who has borrowed money through the BBLS, now has the option to tailor their repayments according to their individual circumstances.
Pay as You Grow repayment flexibilities now include the option to delay repayments for a further six months. This means that you don’t have to make payments on your loan until 18 months after you originally took it out if you wish.
Other updates to Pay as You Grow include:
- The option to pause repayments from your first payment. Previously, companies had to wait until they had made six repayments before they could do this
- The ability to extend the length of your loan from six years to 10
- Being able to make interest-only payments for up to six months
Speaking about the changes to the Bounce Back Loan Scheme repayments, Chancellor Rishi Sunak commented:
“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.”
If you would like help applying for the BBLS or would like to discuss your repayment options, please don’t hesitate to get in touch with PKB.
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