Pay as You Grow flexible repayment options

Businesses that have taken advantage of the government-backed Bounce Back Loan Scheme (BBLS) to get through COVID-19 will now have greater flexibility to repay their loans.

The Pay as You Grow (PAYG) scheme, first announced by the Chancellor in September 2020, allows borrowers to extend the length of the loan from six years to ten, pay interest-only payments for six months and offers a six month payment holiday break.

The additional support announced on Monday 8 February will now give borrowers the option to tailor repayments to their individual circumstances, providing more time and greater flexibility to repay the loans. The six month payment holiday break will now be available to all from their first repayment, rather than after six repayments have been made. This will mean that businesses can choose to make no payments on their loans until 18 months after they originally took them out.

Lenders will start contacting borrowers to inform them of the repayment schedules and how to access flexible repayment options. The first repayment due for businesses who received BBLS loans will be May 2021 onwards and borrowers should only expect correspondence three months before their first repayments are due.

If you would like to discuss your circumstances, please contact your usual EQ contact or call one of our offices.