Businesses that took out COVID-19 loans will be given some âbreathing spaceâ to make their first repayment, Chancellor Rishi Sunak has announced.
The Treasury announced over 1.4 million firms who have taken out bounce-back loans will be able to pay it back over a ten-year period instead of six.
Borrowers also have the option to only pay the 2.5% interest on the loans or pause repayments altogether for six months, but only after six contributions have been made.
When the bounce-back loan scheme was launched, firms were allowed to borrow up to £50,000 to help them stay afloat during the pandemic.
Sunak said:
âBusinesses are continuing to feel the impact of extended disruption from COVID-19, and weâre determined to give them the backing and confidence they need to get through the pandemic.
âThatâs why weâre giving bounce-back loan borrowers breathing space to get back on their feet, through greater flexibility and time to repay their loans on their terms.â
Talk to us about your business's cashflow.
Firms get more time to repay bounce-back loans
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