The new Recovery Loan Scheme is now set to replace the Coronavirus Business Interruption Loan Scheme (CBILS) and the Bounce Back Loan Scheme (BBLS) until the end of 2021.
Chancellor Rishi Sunak has announced a new loan or overdraft between 25,000 and £10million that will be available to all eligible UK businesses.
Applications can be made from April 6th to December 31st subject to review. Applicants of the previous CBILS & BBLS scheme can also apply if they fit the eligibility criteria. Finance terms are up to six years for term loans and asset finance facilities.
For overdrafts and invoice finance, terms will be up to three years. No personal guarantees will be taken on facilities up to £250,000 and, as before a borrower’s principal private residence cannot be taken as security.
The loans will be available from a network of accredited lenders, and the names will be published in the near future.
If your business is based in the UK then you can apply, but it must:
- Be viable or would be viable were it not for the pandemic
- Have been impacted by the coronavirus pandemic
- Not be in collective insolvency proceedings
For the activities and sports industry that has been greatly affected by pandemic restrictions, reliable financing is going to be tantamount to getting the sector back on its feet.
See here for more information and to keep abreast of developments.