Recovery Loan Scheme extended

Accountancy support
Jan
7
Posted 2022 by Jane L

Applications for this loan have been extended and are now open until 30 June 2022.

Launched on 6 April 2021, the Recovery Loan Scheme (RLS) provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.

You can apply to the scheme if Covid-19 has affected your business. You can use the finance for any legitimate business purpose – including managing cashflow, investment and growth. However, you must be able to afford to take out additional debt finance for these purposes.

If your business has already borrowed from any of the other coronavirus loan schemes – namely:

  • the Bounce Back Loan Scheme (BBLS)
  • the Coronavirus Business Interruption Loan Scheme (CBILS)
  • the Coronavirus Large Business Interruption Loan Scheme (CLBILS)

RLS is still open to you, although the amount you have borrowed under an existing scheme may in certain circumstances limit the amount you may borrow under RLS.

At Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022, with the following changes applying from 1 January 2022:

  • The scheme will only be open to businesses with a turnover not exceeding £45m per annum
  • The maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m)
  • The guaranteed coverage that the government will provide to lenders will be reduced to 70%

See: Recovery Loan Scheme – British Business Bank (british-business-bank.co.uk)

Next steps

If you need business or tax advice, please do get in touch. We’re currently helping many local businesses through the Covid financial support maze.