The UK Government has now moved on from providing financial support for companies affected by Covid restrictions to help them survive to the next step, which is to help UK companies grow and recover.
Just to remind ourselves the Bounce Back Loan scheme provided loans of up to GBP 50,000 at fixed low interest rates and the lending bank was fully guaranteed by the UK Government.
For larger amounts the Covid Business Interruption Loans provided a Government guarantee of 80% to the lending bank for loans over GBP 50,000.
Applications for both these loans have now closed, and a new arrangement, called the Recovery Loan Scheme (RLS) has opened.
In summary, this offers UK companies loans of up to GBP 10 million with a UK Government guarantee to the lender of 80% of the loan. The lending bank can take security, but to protect smaller businesses the lender cannot take a personal guarantee for any loan below GBP 250,000.
This shows the extent to which the UK Government is committed to regrowing the economy, particularly smaller companies, and increasing employment after what has been a very difficult year for everyone.
Further details can be found on the website of the British Business Bank and of course EBS is always happy to discuss.
