The Recovery Loan Scheme will ensure businesses continue to benefit from Government-guaranteed finance throughout 2021. Loans will include 80% government guarantee and interest rate cap.
With non-essential retail and outdoor hospitality reopening next week, Ministers have ensured that appropriate support is still available to businesses to protect jobs. From 7th April 2021, businesses – ranging from coffee shops and restaurants to hairdressers and gyms – and can access loans varying in size from £25,000, up to a maximum of £10 million. Invoice and asset finance is available from £1,000.
How does the business recovery loan scheme work?
The scheme will allow businesses to access loans varying in size, starting from £25,000 and up to a maximum of £10m.
It will be available to businesses such as coffee shops, restaurants, hairdressers, and gyms that have been forced to close during the lockdown.
It will be administered by the British Business Bank, with loans available from a network of accredited commercial lenders.
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 in the vast majority of cases.
How to apply
The British Business Bank says you can apply to the scheme if COVID19 has affected your business. To apply for the scheme, you must go through one of the accredited lenders.