New loan scheme for businesses affected by the pandemic

A new government-backed loan scheme is to be launched to help businesses access finance as they recover from the disruption of the pandemic.

Treasury guidance explains that the recovery loan scheme will ensure businesses of any size can access loans and other finance of up to £10m per business after the existing Covid-19 loan schemes close. Businesses that have received support under those schemes will still be eligible to access finance under the new arrangement as long as they meet all other eligibility criteria.

The business 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.

Finance terms will be for up to six years for term loans and asset finance facilities. For overdrafts and invoice finance facilities terms...