Pay As You Grow facility on Bounce Back Loans

16th Feb 21

The British Business Bank, the UK’s economic development bank, recently announced further details of Pay As You Grow.

Pay As You Grow is available to help UK small businesses that have taken out a Covid-19 emergency Bounce Back Loan to manage their cashflow and have a better chance of getting back to growth.

Originally announced by the Chancellor of the Exchequer in September 2020, Pay As You Grow (PAYG) will 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.

For further information, go to the British Business Bank website.