A £5 billion fund of “restart grants” will be available from April to help businesses reopen. Non-essential retail businesses will open first, so they’ll receive grants of up to £6,000 per premises. Larger hospitality and leisure businesses, including personal care and gyms, that will be able to open later in the year will be eligible for grants of up to £18,000.
Business Loans – The Recovery Loans Scheme will offer loans of between £10,000 and £25m through participating lenders. Loans will be backed up to 80% by the government and will replace the current BBL and CBILS.
The Recovery Loan Scheme ensures businesses of any size can continue to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan schemes close, providing support as businesses recover and grow following the disruption of the pandemic and the end of the transition period.
Once received, the finance can be used for any legitimate business purpose, including growth and investment.
The government guarantees 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses.
The scheme launches on 6 April and is open until 31 December, subject to review. Loans will be available through a network of accredited lenders, whose names will be made public in due course.
What type of finance is available
Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.
You will be able to apply for a loan if your business:
You will need to show that your business:
Business that have received support under the existing COVID-19 guaranteed loan schemes will still be eligible to access finance under this scheme, if they meet all other eligibility criteria.
Who cannot apply
Businesses from any sector will be eligible to apply, except:
How to apply
The scheme will launch on 6 April 2021. Further details on how to apply and details of accredited lenders will be released in due course.
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