The Recovery Loan Scheme has just opened, to help businesses of any size access loans and other kinds of finance so they can recover after the pandemic and the transition period. As we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis.
The scheme will support borrowing of up to £10m for individual businesses and up to £30m across a group. The funds can be used for any legitimate business purpose, including managing cashflow, growth and investment. The scheme is designed to appeal to businesses that can afford to take out additional finance for these purposes, and I am pleased that the Treasury has promised to cover 80% of the loan lent by banks, if businesses are unable to pay back their loans.
Loans are available through a network of accredited lenders, whose names will be made public in the coming weeks.
I know the events of the past year have severely impacted businesses ability to run as usual. This new loan scheme will support smaller businesses as they steer a path towards a sustainable recovery, and provide them with a firm foundation to protect jobs and plan ahead as we build back better from the pandemic.
For more details, go to https://www.gov.uk/guidance/recovery-loan-scheme