Government Announces Two-year Extension of Recovery Loan Scheme for Small Firms

A loan scheme offering finance for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic has been extended to 2024.

A support scheme offering Government-backed loans to small businesses will be extended for a further two years, Business Secretary Kwasi Kwarteng has announced.

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. It gives lenders a Government-backed guarantee against the outstanding balance of the facility.

The £4.5 billion scheme is only open to small and medium-sized enterprises (SMEs) in the UK. Loans are available through a network of accredited lenders, listed on the British Business Bank’s website. Once received, the finance can be used for any legitimate business purpose, including growth and investment.

The maximum amount of finance available is £2 million per business. The actual amount offered and the terms are at the discretion of participating lenders. The guarantee coverage that the Government will provide to lenders is 70%.

Kwasi Kwarteng said:

‘Small businesses are the lifeblood of the British economy, which is why we are determined to support our traders and entrepreneurs in dealing with worldwide inflationary pressures.

‘The extension of the Recovery Loan Scheme will help ensure we continue to provide much-needed finance to thousands of small businesses across the country, while stimulating local communities, creating jobs and driving economic growth in the UK.’

(This report was the subject of a GRANTfinder Newsflash.)