The new loan scheme coincides with further easing of Covid restrictions being announced – a week before outdoor pubs, shops, gyms and hairdressers are set to reopen on 12 April. Indoor hospitality, theatres, cinemas and museums will reopen 17 May.
Many businesses are eager to get back to some form of normality, as many are experiencing significant drops in revenue, cash flow and working capital during the pandemic. Great quantities of businesses now need extra income to kickstart their recovery.
The government has now launched the Recovery Loan Scheme which is available for all UK trading businesses. The eligible businesses will have access to loans between £25,000 and £10million to help get them back on track.
Recovery Loan scheme business eligibility criteria:
- You have to be trading in the UK
- Have a viable business if it were not for the pandemic
- You are not involved in a collective insolvency proceedings
You are still able to access the loan if you have previously taken out a loan under CBILS or BBLS
Business Secretary Kwasi Kwarteng said: “The launch of our new Recovery Loan Scheme will provide businesses with a firm foundation on which to plan ahead, protect jobs and prepare for a safe reopening as we build back better from the pandemic.”
How to apply?
Previous lenders for CBILS and BBLS have been invited to apply for the accreditation for the Recovery Loan Scheme. Once accredited the lenders will be listed on the British Business Bank website. For a list of the accredited lenders please click here