Amid criticisms of the lack of detail in the recovery loan scheme, the British Business Bank has said that the full information will be released when the support programme launches on 6 April.
In his 2021 Budget Chancellor Rishi Sunak announced the new scheme, which will launch on 6 April and run until the end of the year, subject to a review. This will replace the coronavirus business interruption loan scheme (CBILS), bounce back loan scheme (BBLS) and coronavirus large business interruption loan scheme which end on 31 March.
The British Business Bank then set out further details, saying it will have a maximum facility of £10m and will provide loans from £1,000 for asset and invoice finance and from £25,001 for term loans and overdrafts.
“The full details of the scheme will not be announced until 6 April when it is expected to launch,” said a spokesperson from the British Business Bank.
However, the scheme has been criticised for a lack of detail in some areas.
Lee Birkett, founder of JustUs, said that he would be interested in taking part but it would depend on the details of the scheme. He said the rates the scheme will be offered at and the rate at which the government will guarantee have yet to be unveiled.
“Last time the rules changed as they went on,” he said.
“Until they publish further information this is so generic it’s ridiculous. It doesn’t mention the rates which is pretty important, and it doesn’t mention eligibility. Everyone knew the rates on BBLS and CBILS were capped, the problem here is it’ll be the case of what rates will they guarantee.
“I think the challenges will be the terms and conditions of the guarantee, these are just the guidelines of the scheme.”
Richard Churchill, a partner in the business advisory group of tax and advisory firm Blick Rothenberg, has also voiced criticism that the finer details of the scheme, such as eligibility, have yet to be announced.