IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

Yes

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 06 Apr 2021 | Removal date: 31 Dec 2021

Loan guarantee

On 3 March 2021, the UK government announced introducing the recovery loan scheme to help businesses affected by the COVID-19 outbreak. The loan scheme is designed to support businesses to take out additional debt finance for their legitimate business purposes including managing cash flow, investment, and growth.

Under the recovery loan scheme, the UK government provides an 80% guarantee on commercial loans. The scheme will give businesses of any size access to loans up to GBP 10 million for up to six years.

The recovery loan scheme will launch on 6 April 2021 and it will run until 31 December 2021.

The recovery fund is replacing the government’s other guarantee schemes namely Coronavirus Business Interruption Loan Scheme (CBILS), the Coronavirus Large Business Interruption Loan Scheme (CLBILS), and the Bounce Back Loan Scheme (BBLS) which will expire on 31 March 2021 (see related state acts). But it is announced that businesses who have taken out a CBILS, CLBILS, or BBLS facility will be able to access the new scheme.

AFFECTED COUNTRIES

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