The government’s Recovery Loan Scheme has opened for applications as of yesterday (6 April).
Revealed to the public as part of the Budget for 2021, the scheme will provide access to finance for UK businesses as they recover from the pandemic and is set to run until 31 December 2021, which is currently subject to review.
As part of the new scheme, individual businesses will be eligible for up to £10m for legitimate business practices, with groups being able to access upwards of £30m.
The scheme is administered by the British Business Bank on behalf of the government, which has previously administered the Coronavirus Business Interruption Loan Scheme (CBILS) and Coronavirus Large Business Interruption Loan Scheme (CLBILS).
In order to access the scheme, borrowers must be based in the UK, prove to the lender their business had been impacted by Covid-19, and participate in credit and fraud checks.
On the new scheme, the British Business Bank said: “Lenders previously accredited to provide CBILS have been invited to apply for accreditation for the Recovery Loan Scheme.
“Once accredited, lenders under the scheme will be listed on the British Business Bank website, and we expect to add many more lenders over the coming weeks.”