Chancellor Rishi Sunak used the recent Budget to announce that the Bounce Back Loan Scheme and the Coronavirus Business Interruption Loan Scheme (CBILS) will be replaced by a new Recovery Loan Scheme.

This new scheme will allow any type or size of business in the UK to claim either an overdraft or a loan between now and the end of the year. These can be worth anything from £25,000 to £10 million, while invoice and asset finance options are also set to be on offer. Whichever option the business chooses will come with an 80% guarantee from the government.

Asset financing and loan options will need to be repaid within a period of six years, while the repayment period for invoice financing and overdrafts will be three years.

Just as with the two previous COVID-19 business loans created by the government, all of the money lent through this scheme will be provided by accredited lenders, with those participating set to be announced soon. Whether a business accountant in Goole or anywhere else will be able to apply on behalf of their clients has not been made clear yet.

According to Small Business, Sunak stated that:

“Even with the new Restart Grants, some businesses will also need loans to see them through. 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.”

This scheme will be officially opening for applications on 6th April and will close on 31st December.