Name: Swindells Chartered Accountants
Address: Wilson House, 48 Brooklyn Road, Seaford, East Sussex, BN25 2DX
Price range: ££

Recovery Loan Scheme Open (CBBILS & BBLS replacement)

Melanie Richardson

08/04/2021

The Recovery Loan Scheme has been designed by the government to allow businesses to continue to access loans and other kinds of finance up to £10 million per business once the existing COVID-19 loan schemes close. The aim being to provide support as businesses recover and grow following the disruption of the pandemic and the end of the transition period.

Once received, the funds can be used for any legitimate business purpose, including growth and investment. The government will guarantee 80% of the loan in order to make sure that businesses can access funds that might otherwise not be available under normal lending criteria.

When does the recovery loan scheme open?

The scheme launches on 6 April and is open until 31 December, subject to review. Loans will be available through a network of accredited lenders, whose names will be made public in due course.

What type of finance is available?

Term loans and overdrafts will be available between £25,001 and £10 million per business.
Invoice finance and asset finance will be available between £1,000 and £10 million per business.

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

No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.

Eligibility

You will be able to apply for a loan if your business is trading in the UK and your business:

is viable or would be viable were it not for the pandemic
has been impacted by the coronavirus pandemic
is not in collective insolvency proceedings - further details will be provided in due course

Businesses that have received support under the existing COVID-19 guaranteed loan schemes will still be eligible to access finance under this scheme, if they meet all other eligibility criteria.

Who cannot apply

Businesses from any sector will be eligible to apply, except:

banks, building societies, insurers and reinsurers (but not insurance brokers)
public-sector bodies
state-funded primary and secondary schools

How to apply

The scheme launches on 6 April 2021, click below to visit the application site

APPLY HERE

If you have questions regarding the recovery loan scheme or eligibility, please get in touch with your Swindells’ partner who will be able to advise you further.

Key questions when it comes to inheritance tax

Inheritance tax (IHT) is a complex and often misunderstood aspect of tax law that can have significant implications for your estate. The new Labour government is likely to have plans to change the rules around inheritance tax and so we in this article, we look at the current rules.

Labour’s plans to impose VAT on independent schools

As a Labour government takes office, we look at Labour’s stated intention to apply VAT to independent school fees. This initiative is part of their pledge to “recruit 6,500 new teachers in key subjects to prepare children for life, work and the future, paid for by ending tax breaks for independent schools.” They estimate the policy will raise around £1.6 billion, which is “urgently needed to improve the state school system” used by about 93% of students in the country.

Cash flow management: strategies to keep your business healthy all year round

Managing cash flow is crucial for the success and sustainability of any business, whether you’re a small start up or an established company. Proper cash flow management ensures that your business can cover its expenses, invest in growth opportunities and weather financial uncertainties. Here are some strategies to keep your business’ cash flow healthy all […]