Once other loan schemes such as Bounce Back Loans and the Coronavirus Business Interruption Loan Scheme close, a new Recovery Loan Scheme will be introduced.
From 6 April until 31 December 2021, businesses can apply for loans and overdrafts between £25,001 and £10m and invoice finance and asset finance between £1,000 and £10m. The government will provide an 80% guarantee to lenders.
Finance terms are up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities, terms will be up to three years.
No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.
Coronavirus Business Interruption Loan Scheme
The Coronavirus Business Interruption Loan Scheme helps small and medium-sized businesses to access loans and other kinds of finance up to £5 million. The government guarantees 80% of the finance to the lender and pays interest and any fees for the first 12 months.
There are over 50 lenders participating in the scheme, including all the main retail banks.
The scheme is open until 31 March 2021.
Coronavirus Large Business Interruption Loan Scheme
The Large Business Interruption Loan Scheme helps medium and large sized businesses to access loans and other kinds of finance up to £200 million. The government guarantees 80% of the finance to the lender.
There are 12 lenders participating in the scheme, including all the main retail banks.
The scheme is open until 31 March 2021.
Coronavirus Bounce Back Loan Scheme
The Bounce Back Loan Scheme helps small and medium-sized businesses to borrow between £2,000 and up to 25% of their turnover. The maximum loan available is £50,000. The government guarantees 100% of the loan and their won’t be any fees or interest to pay for the first 12 months.
If you already have a Bounce Back Loan but borrowed less than you were entitled to, you can top up your existing loan to your maximum amount. You must request the top-up by 31 January 2021.
There are 28 lenders participating in the scheme, including many of the main retail banks.
The scheme is open until 31 March 2021.
Future Fund: Breakthrough
The government will launch a new £375m direct co-investment scheme to support innovative, R&D-intensive businesses. The British Business Bank will take equity in funding rounds of over £20m led by private investors.