The Chancellor has announced a new ‘Pay as You Grow’ initiative to help the 1.4 million small businesses who took out government-backed Bounce Back Loans. Borrowers will have the option to:
- Extend the length of their loan from six to ten years.
- Make interest-only payments for six months. Businesses will be able to use this option up to three times throughout the loan period.
- Pause repayments entirely for up to a further six months (available from the first repayment rather than after six repayments have been made).
Lenders will reach out to borrowers to provide information on the Pay as You Grow initiative.
The Chancellor has said that this will give small businesses “breathing space to get back on their feet”.
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