A new scheme designed to support access to finance for businesses as they recover and grow following the pandemic, opens to applications from this week.
The Recovery Loan Scheme, announced at the Budget on March 3, is scheduled to run until December 31.
It will support borrowing of up to £10m for individual businesses and up to £30m across a group, and, once received, the funds can be used for any legitimate business purpose, including managing cashflow, growth and investment.
It is designed to appeal to businesses that can afford to take out additional finance for these purposes.
The British Business Bank, which will administer the scheme on behalf of the Government, played an important role during the pandemic, by administering the Bounce Back Loan Scheme, Coronavirus Business Interruption Loan Scheme and Coronavirus Large Business Interruption Loan Scheme.
The new Recovery Loan Scheme will continue to support smaller businesses as they steer a path towards a sustainable recovery.
Businesses have access to multiple schemes: Businesses that have taken advantage of other facilities are able to access the new scheme, although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow.
Eligibility criteria includes the borrower being able to confirm to the lender that it has been impacted by Covid-19.
The borrower must be carrying out trading activity in the UK and the lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid.