6/2/21 Update - Rishi Sunak has announced that payments can be paused for six months before the initial repayment is due to be made 12 months after taking out the loan. This means payments can start 18 months after taking out the loan but you will likely be charged interest in the six month break.
Part of the Chancellor's Winter Economy Plan included updates to the way Bounce Back Loans are administered.
We have created the calculator below to help you see the effects of the changes, including changing your loan term, adding a six month initial payment holiday, and making overpayments.
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Here is an overview of the changes to Bounce Back Loans:
- The loan term can be extended from the current five years to up to ten years.
- Businesses that are struggling will have the option to switch to interest-only payments for periods of up to six months. The interest-only option can only be used three times during the loan term.
- Businesses can also pause their repayments entirely for up to six months. The business can only use this option once, and only once six months worth of repayments have been made already.