Businesses that took out government-backed Bounce Back Loans to get through Covid-19 will now have greater flexibility to repay their loans.
Bounce Back Loan borrowers will now have the option to tailor payments according to their individual circumstances and now have the option to delay all repayments for a further six months.
Visit the GOV.UK website to read the update.
The scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000.
The UK Government guarantees 100% of the loan and there won’t be any fees or interest to pay for the first 12 months. After 12 months the interest rate will be 2.5% a year.
The scheme is open to applications until 31 March 2021.
If you already have a Bounce Back Loan but borrowed less than you were entitled to, you can top up your existing loan to your maximum amount. You must request the top-up by 31 March 2021.
Find out how to apply for a coronavirus Bounce Back Loan by visiting the GOV.UK website.