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Recovery Loans
10 May

Recovery Loans and Restart Grants

Recovery Loans

In his Spring Budget 2021, the Chancellor Rishi Sunak announced two new funding opportunities for businesses impacted by COVID-19:

  1. Restart Grants to enable non-essential retail, hospitality & leisure to re-open.
  2. A Recovery Loan Scheme to replace other government back loan schemes.

With the Bounce Back loan no longer available, and the local government grants used up, these additional measures will be welcome relief to struggling businesses across the UK. Both opportunities are now open for applications, so what do you need to know and how can you benefit?

What is a Restart Grant?

The Restart Grant is a new fund available to business owners, to aid them through the final stages of our COVID-19 restrictions. It replaces the monthly Local Restrictions Support Grants that closed at the end of March. There are around 700,000 businesses in England touted to be eligible for the grant.

How much funding will the Restart Grant provide?

The grant will be received as a one-off payment, designed to help businesses re-open. Eligible non-essential retailers will receive grants of up to £6,000; hospitality, accommodation, personal care, gym and leisure businesses with premises will be able to claim up to £18,000.

Strand One of the Restart Grant covers non-essential retail premises, with the following thresholds applicable to these businesses:

  1. Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £15,000 or under on 1 April 2021 will receive a payment of £2,667.
  2. Businesses occupying hereditaments appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on 1 April 2021 will receive a payment of £4,000.
  3. Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £51,000 or over on 1 April 2021 will receive a payment of £6,000.

Strand Two of the Restart Grant supports hospitality, accommodation, personal care, gym and leisure businesses with premises, with the following thresholds applicable:

  1. Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £15,000 or under on 1 April 2021 will receive a payment of £8,000.
  2. Businesses occupying hereditaments appearing on the local rating list with a rateable value over £15,000 and less than £51,000 on 1 April 2021 will receive a payment of £12,000.
  3. Businesses occupying hereditaments appearing on the local rating list with a rateable value of exactly £51,000 or over on 1 April 2021 will receive a payment of £18,000.

In order to be eligible for the grant, you must have been trading on 1st April 2021, when the scheme opened initially.

How do I apply for the Restart Grant?

Please contact your local council to apply.

What is a Recovery Loan?

The new Recovery Loan Scheme (RLS) is similar to the Bounce Back Loans, in that it is Government Backed at 80% rather than 100%, and will replace the Coronavirus Business Interruption Loan Scheme and the Bounce Back Loan Scheme. Interest rates have been capped at 14.99%, with the government urging lenders to keep rates down to aid in protecting jobs.

This scheme is set to run until the 31st December 2021, administered by the British Business Bank, with a diverse network of lenders offering the Recovery Loans from the 6th April 2021.

How am I eligible, and what is available to me?

 You can apply for a loan if your business is trading in the UK, and you will also need to show that your business:

  • Would be viable were it not for the pandemic
  • Has been adversely impacted by the pandemic
  • Is not in collective insolvency proceedings

In applying for the Recovery Loan Scheme, you can receive:

  • 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

No personal guarantees will be taken on facilities up to £250,000 and a borrower’s principal private residence is not able to be taken as security against the loans.

The maximum length of the loan facility depends on the type of finance you apply for. For overdrafts and invoice financing facilities, the loan length is up to 3 years. For term loans and asset finance facilities, this is up to 6 years.

How do I apply for a Recovery Loan?

To apply for this loan scheme you should contact the lenders directly, full details of the loan can be found here and should be provided by the lender in addition.


If you would like to know more about Recovery Loans and Restart Grants, then the easiest way to do it is to go to our website and take it from there!

If you’re still unsure about us, you can see our full testimonial page at testimonials

Interested in contacting us in regard to this post or have another question you would like us to answer? You can phone or email our office. More information on contacting us at contacts

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