Here’s a bit more information on this announcement from yesterday’s budget.
Applications for these will open on 6th April 2021 until 31st December 2021 and are available to just about any trade sector or business.
The finance can be used for any legitimate business purpose – including growth and investment – with the government guaranteeing 80% of the finance to the lender.
The finance can be in the form of a term loan or overdraft between £25k to £10m per business. It can also be in the form of invoice finance and asset finance between £1k and £10m per business.
Finance terms are up to 6 years for term loans and asset finance facilities; and for overdrafts and invoice finance facilities terms will be up to 3 years.
No personal guarantees will be taken on facilities up to £250k and a borrower’s principal private residence cannot be taken as security.
Interest and fees are payable from Day 1 and there is no capital holiday repayment period (unlike Bounce Back Loans or CBILS).
Please note that you CAN apply for a Recovery Loan even although you may already have a BBL or CBILS provided you meet all the eligibility criteria.
I have a feeling these could be in demand!