Skip to content
Search
AI Powered
Latest Stories

Government launches new loan scheme to help companies recover

A new government-backed loan scheme launches today (6 April) to help companies access finance as the economy reopens from a strict lockdown, offering maximum loans of £10 million.

Chancellor of the Exchequer Rishi Sunak said the loans under the Recovery Loan Scheme, ranging from £25,000 to 10 million, would replace existing Covid-19 programmes and be on top of a grant scheme that has been launched to help companies restart trading.


The scheme will be administered by the British Business Bank, with loans available through commercial lenders and the government providing an 80 per cent guarantee. It will run until the end of this year and interest rates will be capped at 14.99 per cent.

The government is urging lenders to keep rates down to protect jobs. The government said so far its emergency loans had supported more than £75 billion of financing for 1.6 million businesses.

"As we safely reopen parts of our economy, our new Recovery Loan Scheme will ensure that businesses continue to have access to the finance they need as we move out of this crisis," Sunak said.

The new scheme is in addition to furlough being extended until 30 September, and the New Restart Grants scheme launched last week, providing funding of up to £18,000 to eligible businesses.

“The launch of our new Recovery Loan Scheme will provide businesses with a firm foundation on which to plan ahead, protect jobs and prepare for a safe reopening as we build back better from the pandemic,” Business Secretary Kwasi Kwarteng added.

Rain Newton-Smith, CBI Chief Economist, said the new loan scheme will be a “huge relief” to firms.

“These loans can be taken alongside existing Covid loans to help firms refinance, restructure and go for growth. It’s vital support remains as restrictions relax and demand returns to normal, allowing businesses to recover, save jobs, and support for reopening,” she said.

More for you

Post Office cash deposits and withdrawals
Post Office, DPD partners to rollout ‘Click and Collect’ services
Post Office, DPD partners to rollout ‘Click and Collect’ services

Parliament to launch inquiry into Post Office Horizon scandal compensation delays

Parliament is to launch an inquiry into delays in compensation settlements for sub postmasters affected by the Horizon scandal.

The newly-formed Business and Trade Select Committee will call ministers, subpostmasters and their lawyers to give evidence next week with a second session to follow in mid-November. The Committee’s chair, Liam Byrne MP told ITV News that there was “definitely a delay” in people coming forward for payment.

Keep ReadingShow less
Bacup Wine and Convenience shop, 34 Burnley Road, Bacup.

Bacup Wine and Convenience shop, 34 Burnley Road, Bacup.

Robbie MacDonald via LDRS

Shop’s licence bid rejected over illegal vapes and ‘no regard’ for children’s safety

A Rossendale shop has had a licence bid rejected after repeatedly selling vapes to children and having illegal products on its premises.

Management at the Ibra Superstore at 34 Burnley Road, Bacup, have shown ‘no regard’ for children’s protection and safety, and have insufficient controls for licensing, Rossendale councillors have ruled.

Keep ReadingShow less
SPAR retailer hits target to secure £100,000 free stock from James Hall

SPAR retailer hits target to secure £100,000 free stock from James Hall

SPAR North of England retailer Dara Singh Randhawa’s family store has been awarded £100,000 of free stock after hitting all his targets since moving to the symbol.

Dara and his family, who have their SPAR store in Patrington in the East Riding of Yorkshire, joined SPAR through its association with James Hall & Co. Ltd in August 2023 having taken the decision to maximise the store’s potential.

Keep ReadingShow less
Pound Sterling bank notes
iStock

National Living Wage to increase to £12.21 in April 2025

The government has on Wednesday announced its acceptance of the Low Pay Commission’s (LPC) recommendations on the rates of the National Minimum Wage (NMW), including the National Living Wage (NLW).

The rates which will apply from 1 April 2025 are as follows:

Keep ReadingShow less
Michael Fletcher

Michael Fletcher

Former Nisa chief Michael Fletcher appointed SPAR UK managing director

SPAR UK has announced the appointment of Michael Fletcher as its new managing director.

Fletcher spent 22 years at Tesco plc, where he held numerous senior commercial roles in the UK, Ireland and Asia. He joined Co-op Retail in 2013 where he held the position of chief commercial officer before moving on to become CEO of Nisa Wholesale, a role he held until 2022.

Keep ReadingShow less