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Small Businesses: Coronavirus

Question for Department for Business, Energy and Industrial Strategy

UIN HL12077, tabled on 12 January 2021

To ask Her Majesty's Government what steps they are taking to help small businesses manage debt; and what plans they have to introduce employee shared ownership schemes to assist companies to address COVID-19 related debt.

Answered on

26 January 2021

We recognise that a diverse range of businesses have taken out Bounce Back Loans. No repayments are due during the first 12 months of the loan term, giving businesses the space they need to get through this difficult period without needing to worry about repaying these loans in the coming months.

Our ‘Pay as you Grow’ options will allow individual businesses to tailor their repayments to their individual circumstances, to help them repay their loans.

In addition, lenders may offer a term extension to the Coronavirus Business Interruption Loan Scheme (CBILS) borrowers in difficulty, as a forbearance tool, up to a maximum of 10 years, if the lender judges that it would help the borrower to repay their loan.