BOUNCE BACK LOAN SCHEME REPAYMENTS

Is your 12-month payment-free period coming to an end soon?

If you took out a loan when it was first launched last year, you would have to begin repaying the money from May unless you can enjoy a repayment holiday in the first six months of the repayment period.

The Government is offering businesses support to repay the Bounce Back Loan via the Pay as you Grow’ (PAYG) initiative.

Under this initiative, businesses have the option to:

Extend the length of the loan from six years to 10 years

Make interest-only payments for six months, with the option to use this up to three times during the life of the loan

Pause repayments entirely for up to six months.

However, businesses do not have to use the PAYG initiative; instead, they can choose to make loan payments as they see fit.

In some cases, it may be beneficial to repay the loan sooner to reduce any interest (fixed at 2.5 per cent per annum) on a Bounce Back Loan. Bounce Back Loans are not subject to early repayment fees.

Team ACG