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<p>We have always been clear that businesses are responsible for repaying any finance
they take out. However, we recognise that some borrowers will benefit from additional
flexibility with regards to their repayments. That is why we announced the Pay As
You Grow measures last year.</p><p>Pay As You Grow is designed to provide Bounce Back
Loan borrowers more time and flexibility over their repayments by giving them the
option to:</p><ul><li>Extend the length of the loan from six years to ten.</li><li>Make
interest-only payments for six months, with the option to use this up to three times
throughout the loan.</li><li>Take up a six-month repayment holiday. This option is
available once during the term of their loan.</li></ul><p> </p><p>Businesses will
be able to use these options either individually or in combination with each other.
In addition, they have the option to fully repay their loan early and will face no
early repayment charges for doing so.</p><p>While the Government covers the interest
due on Coronavirus Business Interruption Loan Scheme (CBILS) loans for the first twelve
months of the loan, repayments of capital are required during this period unless the
lender chooses to grant additional forbearance measures.</p><p>CBILS lenders can extend
the repayment period for CBILS facilities where this is needed, to a maximum of 10
years. CBILS term extensions are offered at the discretion of lenders, and for forbearance
purposes only.</p>
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