Government extends Recovery Loan Scheme
It was announced in the Autumn 2021 Budget by Rishi Sunak that the Recovery Loan Scheme (RLS) would be extended until the end of June 2022 – an extension of 6 months to the previous deadline for applications.
The RLS, administered by the British Business Bank, was launched on 6 April 2021 as a follow-on scheme to the government-backed Coronavirus Business Interruption Loan Scheme (CBILS), to help businesses start to recover from the impacts of the pandemic, and was originally intended to run until the end of the year.
The extension of the scheme comes as welcome news for businesses across the UK as a much-needed gateway to finance as they continue to recover and grow following the COVID19 pandemic. The scheme, which has already approved more than £1bn to small- and medium-sized enterprises (SMEs) across the UK since its launch, will now be able to aid more businesses until next summer.
“Businesses up and down the country are beginning to look beyond the pandemic towards the opportunities available to them in the recovery. The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably in the future.”
There will be some changes to the Scheme that will take effect as of 1 January 2022, details of which can be found on Gov.uk’s Recovery Loan Scheme page. The Scheme will only be open to small and medium-sized enterprises and the maximum amount allowed to be borrowed is being decreased from £10 million to £2 million per business, with a lower government guarantee from 80% to 70% which is said to hopefully “encourage the lending market to move towards normality as the economy continues to recover.” Through RLS, Let’s Do Business Finance continues to offer loans up to £150,000 on terms up to 6 years. Please note these changes will apply to all offers made from 1 January 2022.
“This is great news for business. Although the economy is bouncing back well many businesses still have a long way to go before they recover. The Recovery Loan Scheme provides access to funds that can be used for cash flow, growth investment or restructuring existing finance.”
To find out more about the Recovery Loan Scheme and see if you’re eligible, click here
The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit http://www.british-business-bank.co.uk/recovery-loan-scheme