Bounce Back Loan repayments due for many small businesses
Many small businesses are now required to begin repaying loans taken out under the government’s Bounce Back Loan Scheme (BBLS).
The BBLS helped to support businesses during the coronavirus (COVID-19) pandemic, and permitted firms to apply for a minimum of £2,000, up to a maximum of £50,000, or 25% of business turnover, with the government paying the interest for the first 12 months.
The BBLS closed to new applications and top-up applications on 31 March 2021.
Many businesses have asked banks for more time to repay their BBLS loans. Some of these businesses have opted to extend the loan term from six years to ten years. However, for those firms who have stuck to the original terms, they are required to begin repaying after the 12-month payment holiday.
Businesses can choose to use the government’s Pay as You Grow initiative, which gives firms the option to extend the length of their loan from six to ten years; make interest-only payments for six months; or pause repayments entirely for up to six months.he body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.