The Government has announced a two year extension to the Recovery Loan Scheme.
The Recovery Loan Scheme (RLS), launched in April 2021 to help businesses recovering from the Covid-19 pandemic, has helped almost 19,000 businesses with an average of £202,000 in support.
A Government scheme, it aims to support access to finance for UK businesses, providing lenders with a Government-backed guarantee against the outstanding balance of the facility.
Gareth Hunt, Insolvency Practitioner with RPG Business Recovery, commented:
“It is good to see the extension of the scheme which has provided a lifeline to many businesses across the country.
“Originally scheduled to run until 31 December 2021, the Government announced at Autumn Budget 2021 that the scheme would be extended by six months to 30 June 2022.
“However we are seeing that businesses are continuing to struggle with ongoing pressures post Covid, the repercussions of the situation in Ukraine and record levels of inflation.
“Hopefully, the extension of the Scheme will provide the support that some businesses need in the face of massively increasing costs.”
The maximum amount of external finance available will be £2m per business in Great Britain, and £1m for businesses in scope of the Northern Ireland Protocol. Personal guarantees will be permitted, but not required, for facilities above £250,000, bringing the scheme in line with standard commercial practice in business lending.
The scheme has supported over 16,000 English businesses, as well as 1,000 businesses in Scotland, 600 Welsh businesses and 300 in Northern Ireland.
As ever, you are facing any financial uncertainty, please contact our Licensed Insolvency Practitioners at Royce Peeling Green for a free, no-obligation and confidential chat.
Our Licensed Insolvency Practitioners have many years of experience in business recovery and insolvency and they can provide you with impartial advice and recommendations, entirely without obligation.
Contact us now to discuss how we can help you. Email Gareth Hunt at email@example.com or call 0161 608 0000