BRIDGWATER Chamber of Commerce has welcomed the news that the terms of Pay as You Grow – which helps UK smaller business that have taken out a Bounce Bank Loan to manage their cashflow and have a better chance of getting back to growth – have been eased.
Originally announced by the Chancellor of the Exchequer in September 2020, Pay As You Grow (PAYG) will now enable businesses who have started repaying their Bounce Back Loans to:
- request an extension of their loan term to 10 years from six years, at the same fixed interest rate of 2.5%
- reduce their monthly repayments for six months by paying interest only. This option is available up to three times during the term of their Bounce Back Loan
- take a repayment holiday for up to six months. This option is available once during the term of their Bounce Back Loan.
Roger Smith, General manager of the Bridgwater Chamber, said: “Cash flow is key for any business, even more so in periods of uncertainty, and the Coronavirus pandemic has increased uncertainty to levels rarely seen.
“So the latest announcement by the Chancellor, and subsequent increased flexibility on offer, will be viewed with a sense of relief by businesses that have taken advantage of the Bounce Back Loan scheme.
“It should be noted though that the Bounce Back Loans will still eventually need to be repaid and for that to happen businesses will need to survive.
“So we all have an opportunity to ensure that we do everything we can to use local business wherever possible and help them to build a stable foundation as life gradually returns to something more normal.”