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Bounce Back Loans to have greater flexibility

Bounce Back Loans to have greater flexibility

April Foster

The government have recently announced that businesses that took out Bounce Back Loans to get through the pandemic will now have greater flexibility via the Treasury’s Pay as You Grow repayment options.  
The changes are as follows:
  • Repayments can be delayed for a further six months 
  • Bounce Back Loan Borrowers can now tailor payments according to individual circumstances
  • Pay as You Grow will now be available to over 1.4 million businesses 
As part of the Treasury’s Pay as You Grow repayment flexibilities, borrowers are now able to extend the length of their loans from six years to 10 years (at the same fixed interest rate of 2.5%).

Borrowers can also pause loan repayments up to a period of six months. This option will now be made available to all from the first repayment onwards rather than having to wait after six repayments have been made. 

With the option to now delay all repayments for an additional 6 months, this means that businesses can choose not to repay anything until 18 months after originally taking out the loan.  

In addition, borrowers can also make interest only payments for 6 months, with the option to do this up to three times throughout the course of the loan in order to tailor repayment schedules to suit the needs and circumstances of each business.   

 For further advice on any of the information contained in this email, please contact your usual Moore adviser.