Recovery Loan Scheme and Restart Grant Scheme launches

The Government launched a new loan scheme on 6th April 2021, which aims to provide further support for businesses and jobs. In its Guidance Government confirmed;

• The scheme is open from 6 April 2021 until 31 December 2021. However, the closing date is subject to review.
• Businesses could loan up to £10 million however the actual amount is at the discretion of the lenders.
• This is broken down into
  • term loans or overdrafts of between £25,001 and £10 million per business
  • invoice or asset finance of between £1,000 and £10 million per business
• Loans are to be made available through a system of accredited lenders. The loans will include 80% government guarantee and an interest rate cap however, the borrower businesses will still be 100% liable for the debt.
• To be eligible, a business must be trading in the UK and be able to prove that they;
  • would be viable were it not for the pandemic
  • have been adversely impacted by the pandemic

Grants were also made available from 1 April 2021

• The Restart Grant scheme was introduced with the aim of supporting the reopening of businesses following the lifting of COVID-19 restrictions.
• These grants were made available from 1 April 2021 and are open to businesses in the non-essential retail sector and hospitality, accommodation, leisure, personal care and gym sectors.
• If eligible, businesses in the non-essential retail sector may be entitled to a cash grant of up to £6,000 from their local council.
• Businesses in the hospitality, accommodation, leisure, personal care and gym sectors may also be entitled to a cash grant from their council of up to £18,000.
• Full guidance can be found here.

Aspire comment:

This additional funding will be welcomed by those business which have been affected by both the Covid-19 pandemic and the end of the Brexit transition period and will ensure that businesses continue to benefit from Government-guaranteed finance throughout 2021.

We are working with a number of clients with employment guidance, such as restructuring, redundancies, home working and absence policies.  Please get in touch with one of our advisors on 0121 445 6178 or email enquire@aspirepartnership.co.uk for a chat to see how we can support you and your business.