The Recovery Loan Scheme which was launched in April 2021 has been adapted and extended for two years to continue to provide access to up to £2m for businesses recovering from Covid and facing the challenges associated with the cost of living crisis. The scheme gives lenders a government-backed guarantee against the outstanding balance of the facility, and it is now open to small and medium sized businesses only.
Business Secretary 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.”
You can read the full announcement here.
The guarantee coverage that the government will provide to lenders will be 70%. Loans are available through a network of accredited lenders, listed on the British Business Bank’s website.
You can find full details of the scheme and how businesses can find a lender here.