Government launches new Recovery Loan Scheme
A new Recovery Loan Scheme which offers businesses government-backed loans of up to £10m has launched.
It is a successor to the emergency loan schemes - such as the Bounce Back Loans and the Coronavirus Business Interruption Loans - which closed for applications on 31 March.
Firms have until the end of the year to apply for the Recovery Loan Scheme and it will be open to those who have taken out a loan under the previous schemes.
The announcement comes on the back of the launch of the government 's new Restart Grant scheme which provides one-off grants to help businesses re-open.
The scheme allows eligible non-essential retail businesses to receive grants of up to £6,000 depending on the rateable value of their property, while firms in hospitality, accommodation, leisure, personal care and gyms will be able to claim up to £18,000.
The grants are being administered by local councils. Firms can apply via their local authority website.
However, local authorities have not yet received the funding from central government to start making payments and Greater Birmingham Chambers of Commerce say the government must ensure funding reaches firms quickly.
Daniel Clarke, policy manager at the GBCC, said: “These new schemes will play a crucial role in supporting businesses as they begin to re-open over the coming weeks and months and it is vital that they continue for as long as restrictions remain in place.
“It is essential that this funding reaches businesses as quickly as possible to help alleviate the cash flow burden that many firms are currently facing. Whilst the new grants will provide a welcome boost to many businesses, they unfortunately do not go far enough in helping the most impacted firms cover their essential costs.
“The government must also ensure that the loan application process is easily accessible and that they have addressed some of the issues from the previous schemes which locked out many businesses and prevented them from accessing the financial support they needed to keep themselves afloat.
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