What Is The Loan Recovery Scheme?
The last year has certainly been a tough one for businesses of all shapes and sizes, and across all industries and sectors - but now that the roadmap to recovery has been launched and the UK is returning to a relative state of normality, it seems there is a lot of light at the end of the tunnel.
To help companies get back on their feet after lockdown, the government recently launched its latest initiative - the Recovery Loan Scheme - which is available through various lenders accredited by the British Business Bank.
It replaces the Bounce Back Loan Scheme, the Coronavirus Large Business Interruption Loan Scheme and the Coronavirus Business Interruption Loan Scheme, and up to ￡10 million is available per business, no matter how big they are or their stage of growth.
The government is guaranteeing 80 per cent of the finance to the lender, with the scheme set to remain open until December 31st this year, subject to review.
You will be able to apply for a loan if your business is currently trading in the UK and you will need to prove that your business would be viable if it weren’t for the pandemic, as well as the fact that it has been adversely affected by the crisis. You will also need to prove that the business isn’t in collective insolvency proceedings.
You will be able to secure term loans of overdrafts of between ￡25,000 and ￡10 million per business, as well as invoice or asset finance of between ￡1,000 and ￡10 million per business.
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