Throughout the Covid-19 pandemic, government loan schemes have continued to provide financial support to those industries substantially impacted by the pandemic.
Announced at budget on 3 March 2021, the introduction of the Recovery Loan Scheme. A debt finance programme which will offer businesses affected by Covid-19, the support they require to overcome the impact of the pandemic and provide the potential to expand.
In this article:
- The deadline for applying
- Who is eligible?
- How much you can borrow
- If you can access the scheme following taking out previous government support
- Sectors eligible
When is the deadline for applying?
The recovery loan scheme is currently available until June 2022
Who is eligible?
The scheme is available to businesses trading within the UK. Businesses must be able to prove that they would be viable were it not for the pandemic, have been impacted by the pandemic and are not subject to insolvency proceedings.
How much can I borrow?
Term loans and overdrafts starting at £25,000 will be available, as well as asset and invoice finance facilities starting at £1,000, all finance options will be capped at £10 million.
Loans and asset finance facilities will be available for up to six years, whereas overdrafts and invoice finance facilities available for up to three years.
I have already taken out a Covid-19 government scheme, will I be eligible for the recovery loan scheme?
Yes, the government have confirmed that businesses who have received previous financial aid during the pandemic, will be eligible to access finance under this scheme, providing they meet the other eligibility requirements.
Will businesses from all sectors be eligible to apply?
The following business sectors will be exempt from applying:
- Banks, building societies, insurers and reinsurers
- Public-sector bodies
- State-funded primary and secondary schools