Originally written by Anna Jordan on Small Business
Businesses of any size can apply for a loan between £25,000 and £10m until the end of 2021. Loans will have a Government guarantee of 80 per cent. Asset and invoice finance between £1,000 and £10m will also be available. Further details to follow.
The CBILS and bounce back loan schemes will end on March 31 2021 as previously planned. They were introduced last year to help struggling businesses through difficulties in the earlier stages of the pandemic.
Sunak said: “Even with the new Restart Grants, some businesses will also need loans to see them through. As the Bounce Back Loans and Business Interruption Loan schemes come to an end, we’re introducing a new Recovery Loans Scheme to take their place.”
In response to the announcement, Andrew Sanford, partner at Blick Rothenberg said: “Allowing businesses to apply for the new recovery loan scheme to the end of 2021 is welcome news. However businesses are crying out for long-term funding support.
“Hopefully the repayment terms of the new loan scheme will clearly show that the Government is actually supporting businesses. Repayment terms should be flexible, at least initially, to provide essential cashflow support, and allow for repayment over a ten year period to allow businesses the time to recover.”
Lenders have previously expressed worries delays in establishing details of the scheme with them and their ability to prepare themselves for the loan scheme in time.
Recovery Loans Scheme up to £10m will replace CBILS and BBLs