To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the ability of small businesses to repay Bounce Back Loans.
28 February 2022
The Government has already taken action to give small businesses the space and flexibility to repay their bounce back loans. Under the Bounce Back Loan Scheme (BBLS), no repayments are due from the borrower for the first 12 months of the loan. The Government also covers the first 12 months of interest payments charged to the business by the lender.
In order to give businesses further support, the Government introduced the “Pay as You Grow” (PAYG) measures, which allow individual businesses to tailor their repayments to their individual circumstances. Under these measures, the lenders are required to give all businesses that borrowed under the BBLS the option to repay their loan over a period of up to ten years, as well as the option to move temporarily to interest-only payments for periods of up to six months, or to pause their repayments entirely for up to six months.