The government has today (6 April) launched a new Recovery Loan Scheme to provide additional support to those businesses affected during the COVID-19 pandemic.
Businesses will now be able to receive further government-guaranteed finance from the Recovery Loan Scheme throughout 2021. From today, businesses of any size will be able to access loans varying in size from £25,000, up to a maximum of £10 million. Invoice and asset finance is available from £1,000. The new loan scheme will run until 31 December 2021 and will be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders.
So far, 26 lenders have already been accredited for day one of the scheme, with more to come shortly, and the government will provide an 80% guarantee for all loans. Interest rates have been capped at 14.99% and are expected to be much lower than that in the vast majority of cases, and Ministers are urging lenders to ensure they keep rates down to help protect jobs.
The Recovery Loan Scheme can be used as an additional loan on top of support received from the emergency schemes – such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme – put into place last year.
The Chancellor of the Exchequer, Rishi Sunak, said:
“We have stopped at nothing to protect jobs and livelihoods throughout the pandemic and as the situation has evolved we have ensured that our support continues to meet businesses needs.
As we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis.”
Business Secretary Kwasi Kwarteng said:
“We’re doing everything we can to back businesses as we carefully reopen our economy and recover our way of life.
The launch of our new Recovery Loan Scheme will provide businesses with a firm foundation on which to plan ahead, protect jobs and prepare for a safe reopening as we build back better from the pandemic.”