Government Support Schemes Recovery Loan Scheme

Posted on 7th May 2021 by David Rudd

Small business advisors

Since the COVID 19 outbreak Government funding and support has been hugely helpful to many business owners.

With the closing of the CIBLs (Coronavirus Business Interruption Loan Scheme) and BBLs (Bounce Back Loan Scheme) funding, the Government have introduced a new funding scheme, known as The Recovery Loan Scheme.

The scheme is aimed at helping businesses to recover from the COVID 19 pandemic and the transitional period we currently find ourselves in.

 

A few key points:

  • Government guarantees 80% of the loan.  NB as the borrower you will always be 100% liable for the debt.
  • Scheme is open until 31/12/21
  • You are eligible if your business:
    • Trades in the UK
    • Would be viable had it not been for the pandemic
    • Has been adversely affected by COVID 19
    • Is not within insolvency proceedings
  • The funding is in two parts either):
    • Loans or overdrafts between £25,001 and £10 million per business
    • Invoice or asset finance between £1,000 and £10 million per business
  • No personal guarantees on funding to £250,000
  • The maximum length of funding is either:
    • Overdrafts and invoice financing up to 3 years
    • Loans and asset financing up to 6 years

Source materialhttps://www.gov.uk/guidance/recovery-loan-scheme

 

We can help

Remember, the Steven Burton & Co team of small business advisors are here to help you with the different COVID business schemes available.  If you need a sounding board, some advice or a steer in the right direction, then please don’t hesitate to get in touch.

This material has been prepared for informational guidance purposes only.  Whilst every effort has been made to ensure the contents are accurate, information contained may not be comprehensive.  Furthermore it is not intended to provide, and should not be relied on for, tax or accounting advice.  Steven Burton & Co Limited can not accept any liability for any errors or omission or for any person acting on or refraining from acting on the information provided.

David Rudd

David is an Accountant with over 15 years’ experience in helping a large number of different business owners in numerous sectors from consulting agencies to every area of construction you can think of.

At home dealing with numerous different types of accounting software from Xero to QBO and everything in between.  David is always on the lookout for new technology to help business owners to create more time for themselves and their teams.

With a healthy ambition of never resting on the results of yesterday, David is at his best when working with ambitious business owners who want to improve their businesses for eventual sale.

In his spare time, David is often found cheering on his two boys at football, building Lego (which he pretends is for his boys) or watching the latest TV series on Netflix.

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