In anticipation of further cashflow difficulties, Rishi Sunak has tinkered with various loan schemes to allow for more time and greater flexibility in repayment.
It has been announced today that the application deadline for all four major COVID loan schemes (Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme, Coronavirus Large Business Interruption Loan Scheme and the Future Fund) will be extended until 30 November 2020.
The Bounce Back Loan Scheme, which has provided the greatest amount of support thus far, has been altered such that:
• the loan repayment period can be extended from 6 years to 10 years, almost halving monthly capital repayments.
• scheme participants can move to interest-only repayments if they are in financial difficulty (an option which they can use up to 3 times).
• where participants are in real financial trouble they can apply to suspend repayments for up to 6 months (an option they can use once and only after having made 6 payments).
All of these benefits are being offered with the guarantee that your credit rating will not be affected if you choose to request them.
The Coronavirus Business Interruption Loan Scheme will also see its maximum repayment period extended up to 10 years
Work is also starting on a successor loan plan which is due to start in January 2021.