Chancellor Rishi Sunak has stated that those small firms that have suffered the worst economic effects of the Covid-19 pandemic will be provided with a further buffer period before having to repay support loans.

The latest plans see the government easing the policy announced last autumn that would have required these companies to make six contributions towards repaying any support they have received before they could activate the buffer period of six months. Now, they will be able to opt to take that half year period before beginning to repay any of their Covid-19 loans.

This effectively means that those small firms that applied for Covid-19 support of up to £50,000 will actually have a year and a half before they are expected to start repaying this money, as the buffer period can be added to the existing one year repayment and interest holiday already announced by the government.

According to iNews, Sunak stated that he was keen to give these firms time to get back on their feet before they start paying loans back, adding:

“Businesses are continuing to feel the impact of extended disruption from Covid-19, and we’re determined to give them the backing and confidence they need to get through the pandemic.”

This follows the ‘pay as you grow’ policy introduced last year, which lets firms repay their total Covid-19 loans across a period of 10 years. An accountant for small business in Doncaster or wherever a company is based can help such firms work out repayment plans.