*Extension of Recovery Loan Scheme*
The Chancellor of the Exchequer, Rt Hon Rishi Sunak MP, announced as part of the Autumn Budget and Spending Review that the Recovery Loan Scheme would be extended until 30 June 2022.
Launched on 6 April 2021, the Recovery Loan Scheme (RLS) provides financial support to businesses across the UK as they recover and grow following the disruption of the COVID-19 pandemic.
From 1 January 2022, the following changes will come into force:
- The scheme will only be open to small and medium-sized enterprises
- The maximum amount of finance available will be £2 million per business
- The guarantee coverage that the government will provide to lenders will be reduced to 70%
- These changes will apply to all offers made from 1 January 2022
For guidance from Government:
https://www.gov.uk/guidance/recovery-loan-scheme
You can apply to the scheme if Covid-19 has affected your business. You can use the finance for any legitimate business purpose – including managing cashflow, investment and growth. However, you must be able to afford to take out additional debt finance for these purposes.
If your business has already borrowed from any of the other coronavirus loan schemes – namely:
- the Bounce Back Loan Scheme (BBLS)
- the Coronavirus Business Interruption Loan Scheme (CBILS)
- the Coronavirus Large Business Interruption Loan Scheme (CLBILS)
RLS is still open to you, although the amount you have borrowed under an existing scheme may in certain circumstances limit the amount you may borrow under RLS.
More information for businesses about the scheme is also available on the British Business Bank.
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