We are sharing this update from ACCA, our professional body, for the interest of clients and contacts.  The content is (c) ACCA

Government-backed recovery loan scheme provides additional finance to businesses that require it

The government-backed recovery loan scheme, launched on 6 April, provides additional finance to businesses that require it.

The scheme, announced in the Budget, only runs until 31 December 2021. It will be administered by the British Business Bank, with loans available through a diverse network of accredited commercial lenders. More than 20 lenders have already been accredited for the scheme and more will be added shortly.

The government will provide an 80% guarantee for loans of up to £10m per business. While there is a cap on interest rates at 14.99%, in the vast majority of cases these are expected to be much lower.

For further details, please refer to our updated guidance on the RLS and Start Up Loans on our coronavirus hub for UK members.