To ask the Chancellor of the Exchequer, whether he plans to give businesses that borrowed under the Bounce Back Loan Scheme the option to repay their loan over a period of up to 10 years under the Pay as you Grow scheme.
The Government has introduced the ‘Pay as you Grow’ options to give businesses more time and flexibility to repay their loan on the terms that best suit them. This includes the ability to extend the term of the loan from 6 to 10 years (reducing average monthly payments by almost half), as well as the option to temporarily switch to interest-only payments or to take a full repayment holiday for 6 months.
These are standardised options which can be offered by lenders to all businesses. The options can be requested by borrowers ahead of their first repayment or later in the life of the loan. This will enable businesses to repay the loan on the terms which work best for their individual circumstances.