On Wednesday March 3rd, Chancellor Rishi Sunak unveiled that a new recovery loan scheme to support businesses affected by the pandemic will come into play to replace 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), that are due to end on 31st March.
What Is The Recovery Loan Scheme?
As of February, £45.6bn had been deployed to more than 1.5m SMEs through BBLS, more than £22bn has been loaned to 92,449 businesses via CBILS and 705 loans worth £5.3bn were granted under CLBILS. This shows the importance of the government finding a way to provide continual support for businesses as we follow the new roadmap towards post-covid and post-Brexit life.
In his announcement, Sunak stated: “Even with the new Restart Grants, some businesses will also need loans to see them through. As the Bounce Back Loans and Business Interruption Loan schemes come to an end, we’re introducing a new Recovery Loans Scheme to take their place.”
The new recovery scheme means that UK businesses of any size can apply for a loan between £25,000 and £10m until the end of 2021. Loans will have a Government guarantee of 80%. Asset and invoice finance between £1,000 and £10m will also be available.
The new loan scheme comes in addition to a £5bn ‘restart scheme’ offering grants to help retail, hospitality, leisure industries and personal care businesses reopen from April.
Further, pubs, restaurants and salons, which will be closed until June, will be able to claim grants of up to £18,000.
The Government has also pledged extra grants for the self-employed, a three-month business rates holiday extension and an extension of the furlough scheme until the end of September.
How Do You Apply For The Recovery Loan Scheme?
You can find out all you need to know about gaining access to the new loan scheme designed to support access to finance for UK business as they grow and recover from the disruption of the COVID-19 pandemic, at gov.uk.
The scheme will launch on 6 April 2021, so further details on how to apply and details of accredited lenders will be released in due course.
To help you stay up to date, here are some helpful resources:
- All measures announced by Chancellor Rishi Sunak in the Budget: Budget 2021: What you need to know
- Apply for the Bounce Back Loan Scheme (BBLS) before the end of March
- Apply for the Coronavirus Business Interruption Loan Scheme (CBILS) before the end of March
- Cbm support service: Helping businesses gain access to CBILS
- Guidance around the new Recovery Loan Scheme from the HM Treasury
How Can Cbm Help?
At cbm we are set up to get you through the banks’ application process, whether you are a start-up or an existing business looking to make changes to your business model.
In these unprecedented times, demand for financial support is high and working with cbm, to create a considered application, including a strong business plan and financials, will increase your chances of making a successful application, without wasting valuable time and resources within your business.
Get in touch to find out more about how cbm can support your business. To speak with one of our expert consultants please call us on 01604 420 420 or complete the form on the right.