The British Business Bank gave more details on the new Treasury recovery loan program.

The system of government, Unveiled by Chancellor Rishi Sunak in his Wednesday budget, will continue until the rest of the year, subject to revision.

It will replace the existing Coronavirus Business Interruption Loan Program (CBILS), Rebound Loan Program (BBLS) and Coronavirus Business Interruption Loan Program (CLBILS) which will all end on March 31.

The British Business Bank has said the new successor program will launch on April 6 and aims to help businesses affected by Covid-19.

It can be used for any legitimate business purpose, including managing cash flow, investments, and growth, and is designed to attract companies that can afford to take on additional debt financing for these purposes.

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The program, which has a maximum facility of £ 10million, will provide loans from £ 1,000 for asset and bill financing and from £ 25,001 for term loans and the overdrafts.

There will be no revenue restrictions for businesses accessing the program and businesses will be able to choose from a wide range of products, including term loans, overdrafts, asset finance, and corporate finance facilities. invoices.

Term loans and asset finance facilities are available for up to six years, while overdrafts and bill finance are available for up to three years.

Interest and fees payable by the company upfront with companies required to cover the costs of interest payments and all costs associated with the installation.

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Businesses that had previously taken out a CBILS, CLBILS or BBLS loan will be able to access the new scheme, although the maximum they are allowed to borrow will depend on their lender’s assessment and the scheme’s requirements.

Lenders will be required to perform credit and fraud checks for all applicants. When evaluating, lenders may ignore concerns about short- to medium-term performance due to the pandemic. The checks and approach may vary from one lender to another.

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“The Chancellor confirmed the central role of the British Business Bank in the next phase of the UK’s economic recovery after Covid-19,” said Catherine Lewis La Torre, managing director of the British Business Bank.

“As businesses begin to prepare for the post-Covid period, they will need targeted funding to support them.

“We welcome today’s announcement of two new programs, one aimed at providing debt financing to a wide range of businesses, and the other invest equity capital alongside the private sector in innovative, fast-growing companies.

“Both programs will help spur the innovation and growth needed to support the UK’s long-term prosperity.”