As part of the Autumn Budget and spending review, the Chancellor of the Exchequer, Rishi Sunak, revealed that the Recovery Loan Scheme will be extended until 30th June 2022.
The Recovery Loan Scheme is there to help UK businesses access financial support as they recover from the disruptions COVID-19 has caused.
Currently, the scheme is open to businesses of any size to assist them in accessing loans and other kinds of financial support. Up to £10 million is available to each business, and the Government guarantees 80% of that finance to the lender.
As of 1st January 2022, the regulations around the scheme will change. From then onwards, only small-to-medium-sized businesses (SMEs) will be able to access the loan.
The maximum borrowing amount will also change to £2 million per business, and the guaranteed coverage that the government will provide to lenders will be reduced to 70%.
If your business has faced any financial difficulties as a result of COVID-19, you could be entitled to support from this scheme to help you get back on your feet!
