Bounce Back loans go Pay As You Grow

If you're a Bounce Back Loan Scheme borrower and coming to the end of your first year, you may have concerns about your upcoming repayments. To help, the Government has announced a variety of Pay As You Grow options that could give you more time and flexibility to pay back your loan.

Pay As You Grow (PAYG) will enable businesses who have started repaying their Bounce Back Loans to:

1. request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%.
2. reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan.
3. take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan.

Borrowers can use these options individually or in combination with each other.

Borrowers should be aware that they will pay more interest overall if they use one or more of these options, and that the length of the loan will increase in line with any repayment holidays taken.

For more information visit the British Business Bank website.