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Recovery loan scheme

£10m Recovery Loan Scheme to replace CBILS and BBLS

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Today’s Budget revealed a new Recovery Loan Scheme will replace existing government guaranteed schemes, including CBILS and BBLS, which close at the end of March.

3rd Mar 2021
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From 6 April 2021, the government’s news Recovery Loan Scheme will replace CIBLS, CLBLS and BBLS which all end on 31 March.

The new scheme will provide lenders with a guarantee of 80% on eligible loans between £25,000 and £10m. The scheme will be open to all businesses in Scotland, Wales and Northern Ireland, including those who have already received support under the existing Covid guaranteed loan schemes.

The Recovery Loan Scheme may be used for “any legitimate business purpose, including growth and investment” and will remain open until 31 December, subject to change.

The scheme will become available through “a network of accredited lenders, whose names will be made public in due course”. If previous coronavirus business loan schemes are anything to go by, these will appear on the British Business Bank website under finance options.  

“Even with the new Restart Grants, some businesses will also need loans to see them through,” said Chancellor Rishi Sunak. “As the Bounce Back Loans and Business Interruption Loan schemes come to an end, we’re introducing a new Recovery Loans Scheme to take their place.”

However, the 80% guarantee for the loan scheme is likely to present the same lack of willingness from banks that arose when CIBLS and BBLS first opened at 80%. “With a guarantee for only 80% of the money, few banks will be offering any of these,” Adds Tax Research founder Richard Murphy.

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Replies (1)

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By Open all hours
03rd Mar 2021 18:24

Banks computers can hardly wait to say ‘no’ now.
No change in their attitude expected anytime soon.

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