The bill for Covid bailout loans falls due for small businesses

Here’s your business can tackle repayment demands for emergency Covid bailout loan schemes

Shopkeeper taking payment
Retailers are among the sectors that can still draw on state support
(Image credit: © Getty Images/iStockphoto)

A year after the government launched its rescue-loans schemes for businesses hit by Covid-19, repayment demands are beginning to drop through firms’ letter boxes. And if your business is still struggling financially, it is crucial to talk to lenders about a repayment plan as soon as possible.

The government launched the Coronavirus Business Interruption Loan Scheme (CBILS) in March last year, with the Bounce Back loans scheme going live in May. Neither scheme required repayments in the first 12 months of the loan, while the state agreed to cover interest charges for the first year.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.