To ask the Chancellor of the Exchequer, what steps his Department is taking to support businesses that have not sufficiently recovered from the impact of the covid-19 pandemic to be able to afford repayments on their Bounce Back Loans, even after they have taken advantage of the six month repayment holiday.
Any business concerned about repayments should get in touch with their lender who will be able to provide support and talk them through their options.
In order to give businesses who have borrowed under the Bounce Back Loan Scheme further support and flexibility in making their repayments, the Chancellor announced “Pay as You Grow” (PAYG) options in September 2020. In addition to the six month full repayment holiday, PAYG gives businesses the option to extend their Bounce Back Loan repayments over ten years, reducing their average monthly repayments on the loan by almost half. Businesses also have the option to move to interest-only payments for periods of up to six months (an option which they can use up to three times). If borrowers want to take advantage of these options, they should notify their lender.