Government-backed loans are being made available to car dealerships across the UK under a new loan programme to the tune of up to £10 million per dealership via the new Recovery Loan Scheme.
The existing CBILS, CLBILS and BBLS have now closed for new applications and the Recovery Loan Scheme has now opened for applications. Businesses including car dealerships have until the end of this year to apply for their loan of up to £10 million.
The Chancellor Rishi Sunak has issued a statement saying that the scheme will ensure lenders continue to have the confidence to provide support, and viable businesses can access Government-backed finance throughout 2021 following the disruption of the pandemic.
The Recovery Loan Scheme operates UK-wide, providing an 80% guarantee to lenders for term loans, overdrafts, and invoice and asset finance. The maximum loan size across all products is £10 million; the minimum loan size is £25,000 for term loans and overdrafts, and £1,000 for invoice and asset finance.
If they successfully qualify for the loan, dealers can use the funds for any legitimate business purpose, including growth and investment. The scheme will be administered by the British Business Bank via a diverse network of accredited commercial lenders. Any business trading in the UK is eligible to apply, and applicants will need to demonstrate to lenders that they are viable (or would be were it not for the pandemic) and have been impacted by the pandemic.
See here for details Coronavirus (COVID-19): Business support – GOV.UK (www.gov.uk)