Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what recent discussions he has had with representatives from the banking sector on extending the business loan repayment holiday for the duration of the covid-19 outbreak.

We recognise that some borrowers will benefit from flexibility for their repayments of Government-guaranteed loans. That is why, on 24 September, my Rt. Hon. Friend Mr Chancellor of the Exchequer announced the Pay As You Grow measures following discussion with lenders.

Pay As You Grow will give all Bounce Back Loan borrowers the option to repay their loan over a period of up to ten years. UK businesses will also have the option to move temporarily to interest-only payments for periods of up to six months (an option which they can use up to three times), or to pause their repayments entirely for up to six months (an option they can use once and only after having made six payments).

These changes will provide greater flexibility to repay these loans over a longer period and in a way that better suits businesses’ individual circumstances.

We have also given Coronavirus Business Interruption Loan Scheme lenders the ability to extend the length of borrowers’ loans from a maximum of six years to ten years if it will help the borrower to repay the loan.