What’s it about?
The last year has been a difficult time for all businesses across the UK, the economy has fell the lowest yet in decades due to COVID-19. However, the government have set up a recovery loan scheme to get businesses of any size back on its feet. The scheme supports finance for UK businesses as they recover from the impact of COVID-19 pandemic. This is a great way to keep control under financial stress and manage your options.
Important Information
• The recovery loan scheme aims to provide loans or finance help to businesses as the transition to the ‘new normal’ begins.
• Initially, the scheme will be available through a number of lenders, the business can then choose the type of finance it requires.
• There is up to £10 million available per business, the government will grant 80% to the lender however, like any loan you are 100% liable for the debt. *subject to availability*
The scheme is available until 31 December 2021!
How to check if you’re eligible
You can apply for a loan if;
✔️ Your business is trading in the UK
You must show that your business:
✔️ Has been negatively impacted by the pandemic
✔️ Would be viable if not for the pandemic
✔️ Is not in collective insolvency proceedings *unless your business is located in the Northern Ireland Protocol*
Who cannot apply?
❌ Banks, building societies, insures (not including insurance brokers) and reinsures
❌ State funded primary/secondary schools
❌ Public-sector bodies
Loan and Finance Options
• Loans and overdrafts vary between £25,000 and £10 million per business
• Invoice or asset finance of between £1000 and £10 million per business
No personal guarantees are allowed on facilities up to £25,000 and your private residence must not be used as security.
How long does the loan last?
The maximum length of the loan will vary dependant on the type of finance that is applied for.
• Overdrafts and invoice finance facilities last up to 3 years
• Loans and asset finance facilities last up to 6 years
For more information on this scheme head to: Gov.uk
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