The Bounce Back Loan Scheme (BBLS) application entries terminated on 31/03/2021 and now the government has introduced the Recovery Loan Scheme to finance UK businesses as they grow and recover from the disruption of the COVID-19 pandemic.
The government guarantees 80% of the finance to the lenders, meaning the necessity of credit checks on the business are negated, but as the borrower, you are still 100% liable for the debt.
Loans are available through a network of accredited lenders, listed on the British Business Bank’s website.
You can apply for a loan if your business:
- is trading in the UK
- would be viable were it not for the pandemic
- has been adversely impacted by the pandemic
- is not in collective insolvency proceedings
Loans or overdrafts between £25,001 – £10M can be applied for (for up to 3-year period) and the APR will be dependent on the duration, but the typical APR on a £25K loan over 36-months is 7.7% bringing the value of the loan to £28,435.
Or you can apply for asset financing between £1,000 and £10M per business over a maximum of 6 years.
You can apply for the Recovery Loan Scheme directly from your bank and the scheme is open till 31 December 2021.
More information can be found HERE.