ANNOUNCEMENT 03 Mar 2021
On 3 March 2021, the UK government announced introducing the recovery loan scheme to help businesses affected by the COVID-19 outbreak.
NUMBER OF INTERVENTIONS
HM Treasury, Funding and support for businesses during coronavirus, Guidance, “Recovery Loan Scheme”. Available at: https://www.gov.uk/guidance/recovery-loan-scheme
British Business Bank, State-owned bank of the UK, “Recovery Loan Scheme”. Available at: https://www.british-business-bank.co.uk/ourpartners/coronavirus-business-interruption-loan-schemes/recovery-loan-scheme/
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.