Written question asked by Gareth Thomas (Labour) on Tuesday, 28 October 2025, in the House of Commons. It was due for an answer on Monday, 3 November 2025 (named day). It was answered by Kate Dearden (Labour) on Monday, 3 November 2025 on behalf of the Department for Business and Trade.

Bounce Back Loan Scheme: Hospitality Industry

Question: To ask the Secretary of State for Business and Trade, what assessment he has made of the potential impact of (a) pubs and (b) other hospitality businesses extending their Bounce Back Loans for (i) an additional five years beyond the current maximum limits and (ii) at the same rate of interest.

Answer: Pay As You Grow (PAYG) was introduced to give businesses that borrowed under the Bounce Back Loan Scheme (BBLS) greater flexibility, including extended repayment terms and short-term interest only payments. The Department’s multi-year published evaluation of the Covid-19 Loan Guarantee Schemes indicated that closure rates among BBLS borrowers using PAYG were relatively low compared to others, suggesting PAYG may have had an important role in ensuring the survival of some businesses. The department has not conducted a sector specific assessment in relation to PAYG impact.

Secondary information