Recovery Loan Scheme sails past £1 billion milestone

More than 6,200 small and medium-sized enterprises (SMEs) have been supported by the Recovery Loan Scheme in the wake of the coronavirus pandemic, new figures have revealed.

It comes after the funding initiative passed the £1 billion milestone this month.

According to the report, published by the British Business Bank, the Recovery Loan Scheme has provided £1.06 billion to struggling businesses in the form of loans, equity finance and overdrafts since launching in April this year.

Replacing the Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS), the initiative supports borrowing of up to £10 million to help firms recover from Covid-19 disruption.

The Government guarantees 80 per cent of the loan, incentivising lending, while the scheme itself offers attractive terms and interest rates. In addition, no personal guarantees are taken on facilities up to £250,000 and the borrower’s primary private residence can never be taken as security.

The cash can be used for a variety of means, including managing cash flow, driving growth, and investing in plant, machinery, or new technologies.

Commenting on the success of the scheme, Catherine Lewis La Torre, CEO, British Business Bank, said: “Businesses up and down the country are beginning to look beyond the pandemic towards the opportunities available to them in the recovery.

“The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably in the future. In meeting the £1 billion milestone, the Recovery Loan Scheme is demonstrating its impact by helping thousands of companies to fund their further development.”

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Posted in Business, Covid-19 - Loans, Grant and Deferrals.