From today, businesses ranging from coffee shops and restaurants to hairdressers and gyms can access the Government's Recovery Loan Scheme, designed to ensure they continue to have access to the financial support they need as we move out of the pandemic.
The scheme will be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders from £25,000 up to a maximum of £10 million. Invoice and asset finance is available from £1,000.
26 lenders have already been accredited for day one of the scheme, with more to come shortly, and the Government will provide an 80 per cent guarantee for all loans. Interest rates have been capped at 14.99 per cent and are expected to be much lower than that in the vast majority of cases, and Ministers are urging lenders to ensure they keep rates down to help protect jobs.
This new support can be used as an additional loan on top of support received from emergency schemes such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme.
It comes alongside the furlough scheme being extended until 30 September, and the New Restart Grants scheme launched last week, providing funding of up to £18,000 to eligible businesses. The Government is also supporting jobs and livelihoods through the Plan for Jobs, focused on protecting, supporting and creating jobs across the country through the Kickstart scheme, T-level and a National Careers Service.
More information and details on how to apply for the Recovery Loan Scheme can be found here. As ever, if you have any questions or need my help, please email me at [email protected] or leave me a message on 020 7219 5972.
