Coronavirus (COVID-19)—new government-backed Recovery Loan Scheme launches

Coronavirus (COVID-19)—new government-backed Recovery Loan Scheme launches

HM Treasury has launched its new government-backed loan scheme to provide additional finance to those businesses that need it. Under the new Recovery Loan Scheme, which is intended to ensure businesses continue to benefit from government-guaranteed finance throughout 2021, businesses impacted by the coronavirus (COVID-19) crisis will be able to access loans varying from £25,000 up to a maximum of £10m. The scheme runs until 31 December 2021.

The Recovery Loan Scheme will be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders. The government will provide an 80% guarantee for all loans, and interest rates have been capped at 14.99% but are expected to be much lower than that in ‘the vast majority of cases’. 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 in 2020.

Source: HM Treasury: Recovery Loan Scheme launches today

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