New Recovery Loan Scheme announced

New Recovery Loan Scheme announced

A new loan scheme from the government has recently been launched to protect businesses and jobs and help them to further recover and grow following the coronavirus pandemic.

The scheme, also known as the Recovery Loan Scheme (RLS) was launched at the beginning of April as a replacement of the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) to allow businesses to continue to benefit from Government guaranteed finance throughout 2021. The scheme will run until December 2021 and will be administered by the British Business Bank. The government will be providing 80% guarantee for all loans. For more information on the RLS from the Government, head over to their website here.

Businesses can borrow between £25,000 to £10 million on the scheme (up to £30 million for groups*) from all lenders accredited by the British Business Bank. To see the list of accredited lenders on the British Business Bank panel, click here.  

If you already have a BBLS or CBILS in place, you can still obtain a loan through the new Recovery Loan Scheme, however the amount you can borrow may be affected. More information on access to multiple schemes and other FAQ’s can be found on the British Business Bank website here.

If you are looking for funding, or would like any further clarification support or advice on the above and how this could benefit your business, get in touch with our Corporate Finance team today on support@garbutt-elliott.co.uk

*The maximum amount of a facility provided under the scheme is £10m per business (however it is capped at a maximum of £30m per group if there is more than one business).