Recovery Loan Scheme goes live

A new government-backed business loan scheme has launched to provide firms hurt by the pandemic with fresh financing. 

The Recovery Loan Scheme replaces both the Bounce Back Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Scheme (CBILS/CLBILS) which collectively have lent more than £75bn of finance for 1.6 million British businesses. Lenders previously accredited to provide CBILS have been invited to apply for accreditation for the Recovery Loan Scheme

Businesses can access loans varying in size from £25,000, up to a maximum of £10m (up to £30m across a group). Invoice and asset finance is available from £1,000.

The Chancellor of the Exchequer, Rishi Sunak, says the new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as the country unlocks.

“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 businesses’ needs," he said.

The scheme runs until 31 December 2021, subject to review, and will again be administered by the British Business Bank, with loans available through accredited commercial lenders. The government will provide an 80 per cent guarantee for all loans and interest rates have been capped at 14.99 per cent