The Bounce Back Loans scheme was launched in May 2020 to provide financial support to businesses across the UK that were losing suffering financially as a result of the COVID-19 pandemic. Qualifying small businesses can borrow between £2,000 and £50,000.
Currently the loan is available until 31 March 2021. The Budget on 3rd March may include an extension to applications.
The government has just announced greater repayment flexibility. “Pay as You Grow” will allow businesses to wait up to 18 months before making repayments of the loan.
Once repayments start there are some helpful options :
- Make to interest-only repayments for a period of six months (up to three times over the life of the loan).
- Have a single six months repayment holiday. (once over the life of the loan).
- The loan can now be extended from six to ten which will significantly reduce monthly payments. The interest rate to be kept at 2.5%.
These Pay as You Grow options will be available to more than 1.4 million businesses that have borrowed.
Existing Bounce Back loans can be topped up to a maximum of £50,000. This option also has a deadline of 31st March (it may also be amended in the Budget on 3rd March).
Further information is available from HMRC at
Apply for a coronavirus Bounce Back Loan – GOV.UK (www.gov.uk)
With thanks to Croner –I.
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