Around £45bn has been borrowed by more than 1.4 million small businesses under the Bounce Back Loan scheme. The loans, valued up to £50,000, will now give small businesses the option to extend the repayment length from six years to ten years.
The current scheme provides an interest free period for the first year with the first loans due to start being repaid this May.
Under the new arrangements, announced by the Chancellor Rishi Sunak small businesses will now have the following options:
- Pause repayments for up to six months.
- Extend the loan length to ten years.
- Make interest-only repayments for six months, with the ability to do this up to three times during the life of the loan.
This will allow small businesses to get themselves back on track as the UK economy strengthens.
Sean Daniel, Managing Director said “The extension to the Coronavirus Bounce Back Loan will be welcomed to many small businesses who have been impacted by the latest lockdown. It will take time for some small businesses to get back on their feet so any support will help those affected”.
Clear Vision Financial Management are a team of accountants based in Romsey and Poole, if you would like any advice on funding, or any of the issues in this post please do get in touch. You can call us on 01794 330025 or email us.