Bounce Back Loans and the Coronavirus Interruption Loan Scheme came to an end on 31 March 2021 as planned.
On 6 April, a new ‘Recovery Loan Scheme’ became available and will be open until June 2022. This scheme provides loans of between £25,000 and £2m for SME's, with a maximum amount of finance per group limited to £6m. Lenders will be given a Government guarantee of 70%. This finance can be used for any legitimate business purpose, including growth and investment.
Businesses will be responsible for interest payments and any associated fees from the outset. The annual rate of interest, upfront fee and other fees cannot be more than 14.99% and are expected to be much lower than that in the vast majority of cases. There is no turnover restriction for businesses accessing this scheme, but applications will be subject to credit checks and lending assessments.
A list of accredited lenders can be found on the British Business Bank website: https://www.british-business-bank.co.uk/ourpartners/recovery-loan-scheme/
No personal guarantees will be taken on facilities up to £250,000 and a borrower’s principal private residence cannot be taken as security.
Eligibility:
- Business must be trading in the UK
- Business must be viable were it not for the pandemic
- Business must have been impacted by COVID
- Business must not be in collective insolvency proceedings
Businesses that have received CBILS or Bounce Back Loans will still be eligible to access this loan scheme if the eligibility criteria are met.
