When the Chancellor first announced Bounce Back Loans last year, he had no idea the pandemic would be locking us down into 2021.
For those businesses who took on a loan but are not yet operating as normal, the fear of repayment on top of other bills is an understandable worry. However, Mr Sunak has come to the rescue and provided an option to delay all repayments for a further six months.
The option to pause repayments will be available from the first repayment, not after the first six, so if you are one of those businesses, you can breathe a little sigh of relief for now.
The Chancellor has gone further enabling borrowers to extend their loans from a six year payback to a 10 year payback, which for most people will reduce their monthly repayments by half. This is in addition to the Government covering interest for the first year of the loan.
The Chancellor of the Exchequer, Rishi Sunak, said:
Businesses are continuing to feel the impact of extended disruption from Covid-19, and we’re determined to give them the backing and confidence they need to get through the pandemic.
That’s why we’re 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.
For those who held out on taking a loan but now wish they had – good news, the application deadline has also been extended until March, so crack on while you can!
For more information visit your local high street business bank or take a look at www.british-business-bank.co.uk