The government recently launched its new Recovery Loan Scheme. This is the loan scheme that replaces the government’s CBILS and Bounce Back loans. Like the other schemes, this new recovery loan is to help businesses impacted by the pandemic and can be used for activities like management of cashflow, investment and growth.
Here’s four things you should know about the recovery loan scheme:
- Personal guarantees aren’t needed for <£250k loans
- You can apply for loans, invoice finance, asset finance and overdrafts
- There’s no interest or fee-free period, so repayments start immediately
- You can borrow up to £10 million and the government guarantees 80% of the debt
You can also apply if you’re already taken out a CBILS or a Bounce Back loan. Any company that is interested will need to show that their business is viable, has been affected by the pandemic and that they are not under any insolvency procedures. This scheme is open to 31st December 2021 but subject to review.
Are you interested? Then please get in touch with your usual contact or call the office and we will be happy to help.