Bounce Back Loan Scheme: Repayments

(asked on 3rd September 2021) - View Source

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

To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to delay the repayment of bounce back loans by 12 months.


Answered by
Paul Scully Portrait
Paul Scully
This question was answered on 13th September 2021

The Government has already taken action to give businesses the space and flexibility to repay their bounce back loans. Under the Bounce Back Loan Scheme (BBLS), no repayments are due from the borrower for the first 12 months of the loan. The Government also covers the first 12 months of interest payments charged to the business by the lender.

In order to give businesses further support, the Government introduced the “Pay as You Grow” (PAYG) measures last year, which allow individual businesses to tailor their repayments to their individual circumstances. Under these measures, the lenders are required to give all businesses that borrowed under the BBLS the option to repay their loan over a period of up to ten years, as well as the option to move temporarily to interest-only payments for periods of up to six months, or to pause their repayments entirely for up to six months.

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