Update 6 April
Recovery Loan Scheme Launches
The new government-backed Recovery Loan Scheme launched today to provide additional finance to those businesses that need it. The scheme will be available until the end of December 2021, will be interest rate capped and includes an 80% government guarantee.
You can apply for a loan if COVID-19 has impacted your business. The loan awarded can be used for any legitimate business purposes including managing cash flow and for investment and growth projects.
- The Recovery Loan Scheme can be used to top up other COVID-19 emergency schemes – including the Bounce Back Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Scheme.
Loans are available through a network of accredited lenders which are listed on the British Business Bank’s website.
Are you eligible
You can apply for a loan if your business:
- is trading in the UK
However, you will need to demonstrate that your business:
- would be otherwise viable if not for the pandemic
- has been adversely impacted by COVID
- is not in collective insolvency proceedings (unless your business is in scope of the Northern Ireland Protocol in which case different eligibility rules may apply)
Business that received support under the earlier COVID-19 guaranteed loan schemes are still eligible to access finance under this scheme if they meet all other eligibility criteria.
Businesses from any sector can apply, apart from:
- banks, building societies, insurers and reinsurers (not insurance brokers)
- public-sector bodies
- term loans or overdrafts of between £25,001 and £10 million per business
- invoice or asset finance of between £1,000 and £10 million per business
No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.
How long the loan is for
The maximum length of the facility depends on the type of finance you apply for and will be:
- up to 3 years for overdrafts and invoice finance facilities
- up to 6 years for loans and asset finance facilities
How to apply
For more details including how to apply visit the British Business Bank’s website.
From 1 April, non-essential retail sectors businesses in England will be eligible to apply for a one-off grant up to £6,000.
English businesses in the hospitality, accommodation, leisure, personal care and gym sectors, which open at a later date, will also be eligible for one-off grants of up to £18,000.
Your business may be eligible if it is:
- based in England
- in the non-essential retail, hospitality, accommodation, leisure, personal care or gym sectors
- is trading as at 1 April 2021
Businesses excluded from the fund
You will be ineligible for funding, however, if your business:
- is in administration, insolvent or has been struck off the Companies House register
- has exceeded the permitted subsidy allowance
This scheme is covered by 3 subsidy allowances:
- Small Amounts of Financial Assistance Allowance. You are allowed up to £335,000 (subject to exchange rates) over any period of 3 years
- COVID-19 Business Grant Allowance. You are allowed up to £1,600,000
- COVID-19 Business Grant Special Allowance – if you have reached your limits under the Small Amounts of Financial Assistance Allowance and COVID-19 Business Grant Allowance, you may be able to access a further allowance of funding under these scheme rules of up to £9,000,000, provided certain conditions are met
Grants under these 3 allowances can be combined for a potential total allowance of up to £10,935,000 (subject to exchange rates).
Please note: You must notify your local council if your situation changes and you no longer meet the eligibility criteria.
To check your eligibility for the Restart Grant click on the button below.
Additional Restrictions Grant Scheme
In addition businesses in England can apply for the Additional Restrictions Grant Scheme.
The Additional Restrictions Grant (ARG) provides local councils with grant funding to help them to support businesses which are severely impacted by Covid restrictions. This may/may not be businesses who are registered in the business rates system. This includes those businesses who don’t typically pay business rates such as B&Bs, caterers, wedding service providers, freelancers and tour operators. For more details of the Additional Restrictions Grant (ARG) click here.
Business Rates Relief Fund
A new £1.5 billion Business Rates Relief Fund for businesses affected by COVID-19 outside of the retail, hospitality, and leisure sectors has also been launched. This will provide extra and targeted support for businesses who have been unable to benefit from the existing £16 billion business rates relief. I., for business which fall outside the retail, hospitality and leisure sectors.
Monies will be provided to English local authorities only. Allocation of these funds will be based on the stock of properties in the area whose sectors have been affected by COVID-19.
Local Authorities will use their knowledge to identify eligible businesses.
Need more help?
If you need more help with cash flow issue or managing your business as we transition out of lockdown please contact your local MFW office.