With non-essential businesses poised to reopen next week, lenders have been given the all clear to provide a wave of financial support to businesses as part of the Government's recovery loan scheme (RLS).
Announced by Chancellor Rishi Sunak in the Budget last month, all loans under the programme include an 80% government guarantee.
The loans under the RLS vary in size from £25,001 to £10 million and can be used in addition to other emergency schemes, such as the bounce-back loan scheme (BBLS) and coronavirus business interruption loans scheme (CBILS), although this may limit the amount businesses can get.
Unlike BBLS, however, debtors are also responsible for interest fees, which the Government has capped at 14.99% but rates should be "much lower than that in the vast majority of cases", according to the Treasury.
Welcoming the RLS, Suren Thiru, head of economics at the British Chambers of Commerce, said that "the new scheme can play a potentially pivotal role in supporting the recovery (of businesses) by getting credit flowing to the firms who most need it".
The British Business Bank is administrating the RLS and has so far listed 18 accredited lenders with more expected to join in due course.
To be eligible, businesses must have been impacted by COVID-19, carrying out trading activity in the UK and have a viable business proposition.
Contact us to talk about your eligibility for the RLS.