Treasury launches Recovery Loan Scheme

Treasury launches Recovery Loan Scheme

The Treasury launched the Recovery Loan Scheme on 6 April 2021. The Scheme will provide financial support to UK businesses as they recover from the coronavirus pandemic.

The new Recovery Loan Scheme 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 New Restart Grants Scheme which launched on 1 April 2021, and the emergency schemes, including the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme, put into place in 2020.

Source: Recovery Loan Scheme launches today

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