Bounce Back Loans

Small firms are to get more time to repay state-backed loans taken out to help survive the coronavirus lockdown.

Under the existing scheme, firms get interest-free loans for the first year. But many will start repaying the money in May, when economic recovery is still expected to be weak.

Under the new arrangements, announced late on Friday, businesses will have the options of:

  • Extending the length of the loan from six years to ten
  • Making interest-only payments for six months, with the option to use this up to three times throughout the loan
  • Pausing repayments entirely for up to six months

Source: BBC News