Bounce Back Loan Scheme: guidance for firms on use of Pay as You Grow options

We are consulting on proposed guidance for firms that will be providing Pay as You Grow (PAYG) options under the Government’s Bounce Back Loan Scheme (BBLS).

Read the guidance (PDF)

What we’re proposing

We want firms that provide PAYG options under BBLS to understand our expectations in advance of starting to collect debts from their customers. 

This proposed guidance aims to help firms understand how they can use and offer PAYG options in a manner compliant with Chapter 7 of our Consumer Credit Sourcebook (CONC).

We are not proposing to change existing rules or provisions in respect of the guidance.

Who this applies to

This consultation applies to:

  • firms providing Bounce Back Loans (including P2P platforms)
  • debt collection firms working on behalf of lenders collecting and recovering Bounce Back Loans 

It will also be of interest to:

  • groups representing small businesses and small business borrowers, such as sole traders and small partnerships 
  • debt advice bodies providing advice to the self-employed   


BBLS is a government scheme that enables smaller businesses to access finance more quickly during the coronavirus (Covid-19) outbreak. On 24 September 2020, the Chancellor announced the introduction of PAYG – a system providing flexibility for repaying a Bounce Back Loan. We are consulting on proposed guidance for firms that will be providing PAYG options.

How to respond

Please send your comments to [email protected] by 18 December 2020

Next steps

We will consider your comments and publish our feedback and final guidance in early 2021.