Question to the Department for Business and Trade:

To ask the Secretary of State for Business and Trade, what steps he is taking to ensure that Covid era Build Back Loan repayment programmes do not contribute to business closures and liquidations.

The Bounce Back Loan Scheme (BBLS), is a fully delegated scheme. Under the Scheme’s rules and guidance, lenders are expected to pursue recovery activity in a proportionate way, treating borrowers fairly while providing value to the taxpayer.

To make sure that BBLS borrowers are treated fairly, “Pay As You Grow” was introduced, giving borrowers the flexibility to extend loan terms to ten years, make interest-only repayments for six-months, or request a six-month repayment holiday once during the term of the loan.