Recovery Loan Scheme granted two-year extension

Government-backed support offers over £4.5bn of lending to UK SMEs

LONDON, Wednesday 20th July: The Government and British Business Bank have extended the Recovery Loan Scheme (RLS), with the latest iteration of the scheme opening for applications in August 2022.

Originally launched in April 2021, the RLS is designed to help businesses recover from the COVID-19 pandemic and has so far provided £4.51 billion of total funding offered through 20,643 facilities – with £3.83 billion drawn down through 18,338 facilities.

The maximum loan size will remain at up to £2 million, however lenders may now require a personal guarantee from the borrower, bringing the scheme in line with standard commercial practices. The government provided a guarantee of 80% for loans made before 1st January 2022 and 70% for loans after that date. The borrower remains 100% liable for the debt.

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.”

Catherine Lewis La Torre, CEO, British Business Bank said: “Thousands of businesses in all sectors and from right across the UK have taken out loans under the Recovery Loan Scheme. This will better position them to confront both the challenges and opportunities that are ahead.”

NACFB Chair, Paul Goodman, said: “The NACFB community has supported UK SMEs through all iterations of government-backed loan schemes, from the EFG scheme through to BBLS, CBILS and all RLS variations.”

“I am certain our membership of both commercial finance intermediaries and lenders will continue to utilise the RLS to support the enterprises that are still on their journey to a sustainable recovery,” Paul added.

The NACFB will share further guidance, tailored to the commercial finance intermediary community, in the coming months.

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