The Recovery Loan Scheme has been put in place to allow small and medium sized businesses to access loans and other kinds of finance once the existing COVID-19 loan schemes close. These loans and other finance can be up to £2 million per business, and will help provide support to businesses as they recover and grow following the disruption of the pandemic and the end of the transition period.
Once received, the finance can be used for any legitimate business purpose, including growth and investment.
The government will guarantee 70% of the finance to the lender to ensure they continue to have the confidence to lend to businesses.
The scheme launches on 6 April and is open until June 2022, subject to review. Loans will be available through a network of accredited lenders, whose names will be made public in due course.
Who can benefit?
SME’s nationally that meet the following criteria:
You will be able to apply for a loan if your business is trading in the UK
You will need to show that your business is viable or would be viable were it not for the pandemic; has been impacted by the coronavirus pandemic; and is not in collective insolvency proceedings. Further details will be provided in due course.
Businesses that have received support under the existing COVID-19 guaranteed loan schemes will still be eligible to access finance under this scheme if they meet all other eligibility criteria.