The government has launched a new scheme to support UK businesses with access to finance as they recover from the coronavirus pandemic.

The Recovery Loan Scheme is open to applications from today and is scheduled to run until 31 December 2021, subject to review.

The new scheme will support borrowing of up to £10m for individual businesses and up to £30m across a group. Once received, the funds can be used for any legitimate business purpose, including managing cashflow, growth and investment.

The British Business Bank, which will administer the scheme on behalf of the government, suggested the scheme is designed to appeal to businesses that can afford to take out additional finance for these purposes.

Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.

Commenting on the launch of the scheme, Chancellor, Rishi Sunak, said: “We have stopped at nothing to protect jobs and livelihoods throughout the pandemic and as the situation has evolved we have ensured that our support continues to meet businesses needs.

“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.”

Businesses will be able to use the Recovery Loan Scheme as an additional loan on top of support received from other emergency schemes – such as the Bounce Back Loan Scheme and Coronavirus Business Interruption Loan Scheme – which were put into place last year.

According to the Treasury, the government’s emergency loan schemes have so far supported more than £75bn of finance for 1.6 million British businesses.

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