There is still time to apply for the recovery loan scheme
There were a number of initiatives launched by the Government throughout the pandemic providing much needed support to businesses. The recovery loan scheme was launched on 6th April 2021 following a year of restrictions.
The purpose of the recovery loan scheme was to support businesses in the UK as they recovery and grow following the pandemic. Any business affected by Covid can apply for the loan and the funds must be used for business purposes such as managing cashflow, investment and growth.
There have already been a number of loan schemes in place including the bounce back loan, the coronavirus business interruption loan scheme and the coronavirus large business interruption loan scheme. The recovery loan scheme is still open to any business that has applied for any of the other available loans however the amount borrowed may be limited.
Lenders can provide up to £10 million of finance as either a term loan, overdraft, invoice finance or asset finance. The lender if provided with a government-backed guarantee against the outstanding balance of the facility. (The borrower is always 100% liable for the debt).
In the situation where less than £250,000 is being borrowed, the lender will not require a personal guarantee. For amounts over £250,000, it will be up to the discretion of the lender.
The scheme is open until the end of 2021 and the British Business Bank had an accredited list of lenders. You can access the scheme and find out more here.
Sean Daniel, Managing Director said “With lockdown due to end on 19th July many more businesses will be able to get back to trading as normal. For those affected by the pandemic, the recovery loan scheme is a great option to help them back on their feet”.
Get in touch with the friendly Clear Vision Financial Management team to find out how we can help you with your accounting needs. You can call us on 01794 330025 or email us.