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Recovery Loan Scheme Extended

This month the Recovery Loan Scheme (RLS) will be relaunched as the government aims to continue supporting recovering small businesses.

The Recovery Loan Scheme, originally launched in April 2021 to help businesses recovering from the Covid-19 pandemic, has supported almost 19,000 businesses with an average of £202,000 in support.

The original scheme was due to run between April 2021 until 31 December 2021.The government extended the scheme by six months to 30 June 2022 at Autumn Budget 2021 and and made some adjustments to its terms. The scheme will now run until August 2024, supporting access to finance for UK businesses as they look to invest and grow. A guarantee of 80% for loans made before 1 January 2022 and 70% for loans after that date was provided by the government. The borrower remains 100% liable for the debt.

Accredited lenders have offered over £4.5 billion, through the RLS, to smaller UK businesses as reported to the British Business Bank. The scheme will be open to smaller businesses with a turnover of up to £45 million.

The relaunched RLS will support facility sizes of up to £2 million for borrowers outside the scope of the Northern Ireland Protocol, and up to £1 million for those in scope of the Northern Ireland Protocol.

Catherine Lewis La Torre, CEO, British Business Bank, said:

'The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably. Thousands of businesses in all sectors and from right across the UK have taken out loans under the RLS. This will better position them to confront both the challenges and opportunities that are ahead.'

Chancellor of the Exchequer, Nadhim Zahawi, said:

“The Recovery Loan Scheme has supported thousands of businesses over the past year and this extension will ensure they continue to access the finance they need to navigate the months ahead.”

Shevaun Haviland, Director General of the British Chambers of Commerce, said:

"The two-year extension to the Recovery Loan Scheme will be a lifeline for many businesses facing a rising tide of costs.

“It is now essential that businesses in need of this extra support can access the scheme as quickly as possible to make sure they get help before it’s too late.”

Source: .GOV

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