A summary of the new UK government-backed loan scheme.
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Recovery Loan Scheme launched April 6
The scheme will replace CBILS and BBLS
UK Government schemes have supported 1.6 million British businesses
The UK Government launched a new multi-billion pound lending guarantee scheme on April 6, 2021 to take the place of the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS).
The Recovery Loan Scheme (RLS) will provide lenders with a government-backed guarantee of 80% on qualifying loans between £25,000 and £10 million, with invoice and asset finance available from £1,000.
The scheme is open to all businesses, including those who have previously accessed BBLS, CBILS or CLBILS, and can be used for any legitimate businesses purpose such as managing cash flow, investment and growth.
“We have stopped at nothing to protect jobs and livelihoods throughout the pandemic and as the situation has evolved we have ensured that our support continues to meet business’s needs,” said Chancellor of the Exchequer Rishi Sunak.
“As we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis.”
RLS opened 6 April and will run until December 31, 2021. It will be available through a number of lenders accredited by the British Business Bank. New lenders will be listed on the British Business Bank website as they become available.
RLS comes in addition to the furlough scheme, which has been extended until 30 September, as well as the new Restart Grants scheme. Government loan schemes have so far supported more than £75 billion of loans for 1.6 million British businesses. This is part of the government’s £350 billion support package which includes the furlough scheme, grants and tax deferrals.
Visit the British Business Bank to find out more.