Businesses have been reminded to take advantage of the Recovery Loan Scheme to support their recovery in the wake of the coronavirus pandemic.
It comes after the Covid-19 finance scheme passed the £1 billion milestone this month.
Replacing the Coronavirus Business Interruption Loan Scheme (CBILS) and Bounce Back Loans Scheme (BBLS) in April this year, the Recovery Loan Scheme provides an array of affordable finance options.
For those unfamiliar with the initiative, here’s how it works:
- The Recovery Loan Scheme is open to businesses of all sizes, providing they have been adversely impacted by the coronavirus pandemic and are trading in the UK
- Up to £10 million is available per business. This includes term loans or overdrafts of between £25,001 and £10 million and invoice or asset finance of between £1,000 and £10 million
- The maximum length of the facility is up to three years for overdraft and invoice finance facilities or up to six years for loans and asset finance facilities
- 76 lenders are currently accredited to offer finance through the scheme
- To incentivise lending, the Government will guarantee 80 per cent of the finance to the lender
- No personal guarantees will be taken on facilities up to £250,000 and a borrower’s primary private residence cannot be taken as security
- From 01 January 2022, the scheme will only be open to small and medium-sized enterprises (SMEs), while the maximum amount of finance will be limited to £2 million per business. The Government guarantee will also be reduced to 70 per cent
- The Recovery Loan Scheme will close on 30 June 2022.
The latest statistics suggest that the scheme has now supported more than 6,200 firms with over £1 billion of finance.
Commenting on the figures, Catherine Lewis La Torre, CEO, British Business Bank, said: “Businesses up and down the country are beginning to look beyond the pandemic towards the opportunities available to them in the recovery.
“The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably in the future. In meeting the £1 billion milestone, the Recovery Loan Scheme is demonstrating its impact by helping thousands of companies to fund their further development.”
Click here to learn more about the Recovery Loan Scheme.
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