Car dealers can get up to £ 10million in new government guaranteed loans – Car Dealer Magazine
Car dealers and other businesses in need of help will be able to access government guaranteed loans of up to £ 10million until the end of the year.
Chancellor Rishi Sunak has opened the Treasury Recovery Loan program to roll back businesses as old Covid-19 loan programs are set to run out.
Starting today, the new initiative will replace the Bounce Back Loan Program, the Coronavirus Business Interruption Loan Program and its big brother CLBILS.
The Treasury has pledged to cover 80% of what banks lend if companies don’t repay their loans.
Businesses will be able to access loans ranging in size from £ 25,001 to a maximum of £ 10 million. Bill and asset funding will be available from £ 1,000, according to the Treasury.
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 grow. meet the needs of businesses.
“As we safely reopen parts of our economy, our new stimulus loan program will ensure businesses continue to have access to the financing they need as we emerge from this crisis.”
The new program, which runs until December 31, has the same government guarantee as CBILS and CLBILS, but is less generous than the 100% guarantee for Bounce Back loans.
It will be administered by the British Business Bank, with loans available through a “diverse network of accredited commercial lenders,” officials said.
Interest rates have been capped at 14.99% and ministers are urging lenders to ensure they keep rates low to ensure business owners pay less than the cap.
The payback loan program can be used as an additional loan in addition to the support received from emergency programs put in place last year.
interest rate cap for new loans
Bounce loans were first unveiled at the end of April last year and became available to businesses days later, in early May.
With higher collateral and less stringent lender controls, rebound loans have proven to be by far the most popular of the three regimes, both in terms of number of loans issued and total amount loaned.
As of February 21, more than 1.5 million businesses had received a loan totaling £ 45.6 billion, and half a million more had applied.
The BBLS was intended to quickly channel cash from banks to small businesses, up to £ 50,000 each. The government gave a 100% guarantee on the loans to ensure that the banks were not reluctant to lend.
The Bank of England’s BBLS, CBILS, CLBILS and Covid Corporate Financing Facility have between them granted tens of billions of pounds in loans to British companies.