Sunak announced that the deadline for new applications to the government’s state-backed loan schemes will be extended until 30 November 2020, and the government is starting work on a new guarantee loan programme to begin in January.
He also premiered a “pay as you grow” initiative to help companies repay state-backed business loans. The government will give all businesses that borrowed under the Bounce Back Loan Scheme the option to repay their loan over a period of up to ten years, reducing their average monthly repayments on the loan by almost half.
UK businesses will also have the option to move temporarily to interest-only payments for periods of up to six months (an option which they can use up to three times), or to pause their repayments entirely for up to six months (an option they can use once and only after having made six payments).
The government will also allow Coronavirus Business Interruption Loan Scheme lenders to extend the term of a loan up to ten years.