Bounce Back Loan Repayment Terms Extended
Businesses that took out a Bounce Back loan to support them during the pandemic now have greater flexibility when repaying their loans.
The standard length of Bounce Back loans is 6 years with no repayments or interest in the first 12 months and early repayment without paying a fee. These standard terms remain, however the Government have announced new Pay As You Grow options for repaying these loans. Pay As You Grow allows businesses to:
- extend the term of the loan to 10 years
- make interest only repayments for a period of 6 months (this option can be used up to 3 times)
- pause repayments entirely for a period of 6 months (this option can only be used once)
Lenders have been instructed to contact those businesses with a Bounce Back loan before their first repayment is due to discuss and provide information on how to access flexible repayment options.
The Bounce Back loan scheme is open for applications until 31 March 2021. The maximum amount of a Bounce Back loan is £50,000 and businesses:
- with a Bounce Back loan below £50,000 can top up their existing loan up to £50,000
- without a Bounce Back loan and:
- with another loan can look to convert this loan to a Bounce Back loan
- without a loan can apply for a Bounce Back loan and borrow up to £50,000 should funding be required
A UK Government general COVID-19 support website can be found here. It contains guidance on all matters pertaining to the Coronavirus.
We continue to monitor the situation and keep you informed. If you have any concerns, please do not hesitate to contact us.