Dundee West MP Chris Law has called on the UK Government to extend the time-period for businesses to pay the 2.5% interest rate on Bounce Back Loans beyond April 2021, following the return and extension of lockdown across Scotland and the United Kingdom.
Businesses who received support through the Bounce Back Loan Scheme are expected to begin interest payments from April this year. The Bounce Back Loan Scheme was introduced by the UK Government to help keep small and medium-sized businesses afloat during the pandemic.
In a letter to the Chancellor of the Exchequer, Rishi Sunak MP, Mr Law pointed to the continued spread of the virus and the likelihood of severe restrictions still being in place through spring and early summer as evidence that the scheduled payment date is too soon for most businesses.
Mr Law said:
“These interest repayments are yet another cost that small and medium-sized businesses will have to contend with later this year, despite warnings from the UK Government that measures and restrictions to combat the transmission of COVID-19 will continue for much of the rest of 2021.
“I know that it would offer many business owners some peace of mind if the payments were postponed until a proper recovery is possible, as originally planned when the Scheme was first introduced.
“Businesses in Dundee and across the country need as much support right now as possible. I hope the Chancellor will make the correct decision and postpone these interest payments.”
Chris Law 