Pay As You Grow (PAYG) - here’s the background!
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.
Borrowers can use these options individually or in combination with each other.
Borrowers should be aware that they will pay more interest overall if they use one or more of these options, and that the length of the loan will increase in line with any repayment holidays taken.
Hosted by Martin McTague, FSB National Vice Chair Policy and Advocacy, FSB will also be joined by Richard Bearman – Managing Director, Small Business Lending and Gaynor Dykes - Senior Manager, Origination and Relationship Management, Guarantee and Wholesale Solutions
About the speakers
Martin has served as a volunteer with FSB for 15 years in a variety of roles, and was elected into his national role in March 2016. He is determined to protect and enhance FSB’s hard won reputation as the UK’s leading business lobbying organisation. As Policy and Advocacy Chairman for FSB, Martin works closely with Government and opposition leaders, attending ministerial meetings and representing FSB and its members’ at the most senior levels.
Gaynor joined British Business Bank in 2020 and works within the Guarantee and Wholesale Solutions (GWS) team. The GWS team are responsible for the design and delivery of a range of programmes that provide capital and debt solutions to support commercial lenders to increase the flow of finance to smaller businesses. Gaynor’s background is in SME finance having worked at Yorkshire Bank for 18 years before moving into business support and finance advisory roles, latterly within the Corporate Finance team at Grant Thornton UK LLP
Richard Bearman has over 20 years’ experience in the banking sector and over that time has developed a real passion for working with and supporting entrepreneurs. Richard is a Managing Director at the British Business Bank and is responsible for the Start Up Loans programme. Over the past year Richard also led the Covid-19 emergency Bounce Back Loan Scheme and has recently set up a Financial Crime team at the British Business Bank.