Bounce Back Loan (BBL) borrowers given more flexibility over repayment terms

Bounce Back Loan (BBLS) borrowers now have greater flexibility over repaying their loans.

The scheme is now open until 31st March 2021 (extended from 30th Jan) with a Pay as You Grow repayment option. This enables borrowers to tailor their repayment schedule as follows:

- Extend the length of their loans from 6 years to 10 years

- Make interest-only payments for 6 months, with the option to use this up to three times throughout the loan

- Pause repayments entirely for up to 6 months. This option is available once during the term of the BBL.

The Chancellor has extended the flexibility of the third option, which will now be available to all businesses from their first repayment, rather than after six repayments have been made. Effectively, businesses can choose to make no payments on their loans until 18 months after they originally took them out.

This is in addition to the government covering the costs of interest for the first year of the loan.

The government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.

If you already have a Bounce Back Loan but borrowed less than you were entitled to, you can top up your existing loan to your maximum amount. You must request the top-up by 31st March 2021.

Feel free to contact us on 01244 831277 or send us an email [email protected] if we can support your business.

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