COVID-19 Advice for Business - Pay as You Grow The Chancellor’s Winter Economic Plan explained that the Government will be giving businesses flexibility to pay back the Government-backed loans provided earlier in the year as part of the Covid recovery packages.

Over a million businesses who took advantage of a Bounce Back Loan Scheme (BBLS) will now be able to use the new ‘Pay as You Grow’ flexible repayment system. The length of the loan will now be extended from six years to ten, cutting monthly repayments by nearly half. Interest-only periods of up to six months and payment holidays will also be available to allow greater flexibility and room for businesses to grow. 

The Chancellor also stated that the Government will be extending the repayment terms of loans for Coronavirus Business Interruption Loan Scheme (CBILS) and BBLS from a maximum of six years to ten years.

 Also announced was that the Government will be extending applications for the four Government loan schemes (CBILS, BBLS, CLBILS and the Future Fund). These schemes will now be helping over a million businesses until the end of November. This change aligns all the end dates of these schemes, ensuring that there is further support in place for those firms who need it in the upcoming months.