Thousands of small businesses are due to start repaying their Covid loans this month, now that the year-long payment holidays have come to an end
These bounce back loans were handed out in May 2020 and repayment on them was due to start from 7 June 2021.
In all 1.5 million SMEs took out the government-backed loans, amounting to over £46 billion. Some 20% of borrowers have already asked for more time to pay, with most opting for a six-to-ten-year repayment option. However, the rest still have the original repayment clause in place, which means they must start to repay them from this month.
The government will be looking at how these repayments come in as the first real indication of how UK plc is coping, and it will also discover how many were false claims made fraudulently.