Thomas Quinn
admin
Wed, 05/12/2021 - 17:18.
Reading Time
1 min

Recovery Loan Scheme

Businesses are now able to apply for loans to support their business under the Recovery Loan Scheme

Key points:

  • Available to those who meet the criteria, even if the business has previously received existing Covid-19 loan support.
  • Available from 6 April to 31 December 2021.
  • Term loans and overdrafts are available from £25,001 - £10 million.
  • Invoice finance and asset finance are available from £1,000 - £10 million.
  • The government are providing backing of 80% guarantee against the outstanding balance of the facility. 
  • The business remains 100% liable for repayment of the facility.
  • No personal guarantees need for amounts up to £250,000 and no principal private residences to be accepted as security. 
  • Term loans and asset finance available for terms up to six years.
  • Overdrafts and invoice finance available for terms up to two years.

Qualifying criteria:

  1. Be able to self-certify that it has been impacted by Covid-19;
  2. Be UK-based in its business activity and generate more than 50% of its turnover from trading activity
  3. Be engaged in trading activity in the UK at the time it draws down the facility;
  4. Have a borrowing proposal which would be considered viable by the lender
  5. Not be in collective insolvency proceedings
  6. If a lender can offer finance on normal commercial terms without the need to make use of the scheme, they may do so.

 

How do I apply? 

 

If you require further information or guidance in relation to this scheme please contact a member of the team who will be happy to assist.



Like Post