HMRC has published guidance on a new loan scheme to support access to finance for UK business as they recover from the disruption of the covid-19 pandemic.
The recovery loan scheme gives businesses of any size access to loans and other finance up to £10m per business after the existing covid-19 loan schemes close. Businesses will be able to use the finance for any legitimate business purpose, including growth and investment. The government will guarantee 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses. The package of finance includes:
term loans and overdrafts between £25,001 and £10m per business; and
invoice finance and asset finance between £1,000 and £10m per business.
The scheme will launch on 6 April 2021 and will remain open until 31 December (subject to review). Loans will be available through a network of accredited lenders. In order to qualify under the scheme, among other eligibility criteria, businesses will need to be trading in the UK and able to show that they were viable or would have been viable if not for the pandemic.
HMRC has published guidance on a new loan scheme to support access to finance for UK business as they recover from the disruption of the covid-19 pandemic.
The recovery loan scheme gives businesses of any size access to loans and other finance up to £10m per business after the existing covid-19 loan schemes close. Businesses will be able to use the finance for any legitimate business purpose, including growth and investment. The government will guarantee 80% of the finance to the lender to ensure they continue to have the confidence to lend to businesses. The package of finance includes:
term loans and overdrafts between £25,001 and £10m per business; and
invoice finance and asset finance between £1,000 and £10m per business.
The scheme will launch on 6 April 2021 and will remain open until 31 December (subject to review). Loans will be available through a network of accredited lenders. In order to qualify under the scheme, among other eligibility criteria, businesses will need to be trading in the UK and able to show that they were viable or would have been viable if not for the pandemic.
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