A new government-backed loan scheme launches today providing additional finance to those businesses that need it. The scheme is open until 31 December 2021, subject to review.
Please note that as the borrower you are always 100% liable for the debt but the government guarantees 80% of the finance to the lender. Up to £10 million is available per business but the actual amount offered and the terms, including the interest rate, are at the discretion of lenders.
Businesses that received support under the earlier COVID-19 guaranteed loan schemes are still eligible for a Recovery Loan if they meet all other eligibility criteria.
The scheme offers loans varying in size from £25,000 up to a maximum of £10 million. Invoice and asset finance is available from £1,000. No personal guarantees will be taken on facilities up to £250,000, and a borrower’s main home cannot be taken as security.
To be eligible you will need to show that your business would be viable were it not for the pandemic, has been adversely impacted by it, and is not in insolvency proceedings.
As you are likely to need management accounts and a business plan, please get in touch if you are considering applying.