Support For Bounce Back Loan Borrowers

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Support For Bounce Back Loan Borrowers

Bounce Back Loan borrowers are able to take advantage of  ‘Pay as You Grow’, a series of measures designed to give businesses more time and flexibility to repay loans following their initial 12-month repayment free period.

The first Bounce Back Loan Scheme recipients, who received their loan in early May 2020, were required to make repayments from May 2021, 12 months after the first loans were offered under the scheme.

From May 2021 onwards, borrowers with repayments due have been able to make use of each of the following three options:

  • A full repayment holiday for up to six months at any point during the loan term. This option is available once during the term of their Bounce Back Loan.
  • An extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%.
  • A reduction of their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan.

More information about Pay as You Grow on the British Business Bank’s website.

Businesses that have concerns regarding repaying debt should contact their lender in the first instance.

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