Extension of Recovery Loan Scheme
At the Autumn Budget 2021 the Chancellor announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022.
Launched in April the scheme provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.
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.
From 1 January 2022, the following changes will come into force:
- The scheme will only be open to small and medium sized enterprises (turnover <£45m)
- The maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m)
- The guarantee coverage that the government will provide to lenders will be reduced to 70%
Different lenders will have different lead times for processing applications, and it may not be the case that applications made before 31 December will be subject to the current terms. Applicants should check with their preferred lender
For more information visit the website: Recovery Loan Scheme – British Business Bank (british-business-bank.co.uk)