Bounce Back Loan Scheme – Pay As You Grow

Originally announced in September 2020, Pay As You Grow will enable businesses greater flexibility in repaying their Bounce Back Loans. The Chancellor has recently provided further details on this flexibility.
 
Pay As You Grow will enable businesses who have started repaying their Bounce Back Loans to:
 

• request an extension of their loan term to ten years from six years, at the same fixed interest rate of 2.5%;
• reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan.
• take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan.

 
Borrowers can use these options individually or in combination with each other.
 
Borrowers should be aware that they will pay more interest overall if they use one or more of these options, and that the length of the loan will increase in line with any repayment holidays taken.
 
How to access Pay As You Grow
Pay as You Grow is available to those with a Bounce Back Loan and your lender should contact you three months before your repayments commence to discuss the options available under Pay As You Grow.
 
Note – Pay As You Grow does not apply to CBILS.