Payments will be due for many of the early adopters of the Government’s Bounce Back Loans, which launched in May last year. Under the terms of the scheme, businesses could borrow between £2,000 and 25% of a business’ turnover up to £50,000. For example they can extent the loan period from six to 10 years, pause interest payments and loan repayments for one six-month period and pay only interest for three six-month periods. A survey published earlier this week showed that around 22% of small companies aim to pay back the full loan within the next 12 months. If any of the 1.5 million businesses who took out a bounce back loan do not repay it, the Government has promised to repay the lenders.

Source: Daily Mirror June 01, 2021 09:07 UTC