Chancellor Rishi Sunak announced on Wednesday, March 3rd, that a new recovery loan scheme would be implemented to assist businesses affected by the pandemic, replacing existing emergency government funding through the bounce back loan scheme (BBLS), coronavirus business interruption loan scheme (CBILS), and coronavirus large business interruption loan scheme (CLBILS), which are set to expire on March 31st.
What Exactly Is The Recovery Loan Program?
As of February, the BBLS had funded £45.6 billion to more than 1.5 million SMEs, the CBILS had funded more than £22 billion to 92,449 businesses, and CLBILS had disbursed 705 loans totalling £5.3 billion. This highlights the government’s importance in finding a way to provide ongoing support for businesses as we move forward on the new post-covid and post-Brexit road map.
Sunak stated in his announcement, “Even with the new Restart Grants, some businesses will still require loans to see them through.” We’re introducing a new Recovery Loans Scheme to replace the Bounce Back Loans and Business Interruption Loans schemes, which are both coming to an end.”
Until the end of 2021, UK businesses of any size can apply for a loan between £25,000 and £10 million under the new recovery scheme. The government will guarantee 80 per cent of the loans. Asset and invoice financing of up to £10 million will also be available.
The new loan scheme is in addition to a £5 billion ‘restart scheme’ that began in April and will provide grants to help retail, hospitality, leisure, and personal care businesses reopen.
Pubs, restaurants, and salons will be closed until June will be eligible for up to £18,000 in grants.
The government has also promised additional self-employment grants, a three-month extension of the business rates holiday, and the furlough scheme’s extension until the end of September.
When can you apply for Recovery Loan?
The scheme will go live on April 6th, 2021, and more information on how to apply will be available on our website.
Chancellor Rishi Sunak announced the following measures in his 2021 Budget: What you should know?
- Before the end of March, apply for the Bounce Back Loan Scheme (BBLS).
- Before the end of March, apply for the Coronavirus Business Interruption Loan Scheme (CBILS) though Funding11
How can Funding11 help?
Funding11 will help you navigate the application process through our relationships with lenders made in the past few years.
Processing your loan application with Funding11 will increase your chances of making a successful application without wasting valuable time and resources within your company.
Get in touch to learn more about how Funding11 can help your company. Please call 0203 475 9299 to speak with one of our expert consultants.
