Small businesses are to be given more time repay bounce back loans taken out to help during the pandemic.
The initial repayment period was six years (with no interest charges in the first 12 months) but there will now be the option to extend to a 10 year repayment period. The change in policy has been dubbed ‘pay as you grow’. The Chancellor uses less flowery language, explaining the change gives businesses ‘breathing space to get back on their feet’.
- Extending the length of the loan from six years to 10
- Making interest-only payments for six months, with the option to use this up to three times throughout the loan
- Pausing repayments entirely for up to six months