Shawbrook Bank has been accredited for the recovery loan scheme (RLS).
The challenger bank said that it is now able to offer term loan facilities from £250,000 to £10m to existing customers that have been directly impacted by Covid-19.
The loan terms can range from 12 months to six years.
The funds must be deployed to support trading primarily in the UK, Shawbrook said, and all-asset debenture securities are required.
Businesses that have previously taken out a government-backed loan are able to access the new scheme, although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.
The RLS launched on 6 April this year, supporting UK businesses as they recover and grow following the pandemic. The government guarantees 80 per cent of the finance to the lender.
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It will run until 31 December 2021, subject to review.
The RLS is the successor to the government’s previous Covid-19 support schemes, including the coronavirus business interruption loan scheme (CBILS). Shawbrook had participated in CBILS.
The British Business Bank has accredited a number of new lenders to the RLS in recent weeks, including Newable, SWIG Finance and Whiterock Finance.