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Covid Recovery Loan Scheme Extended

Covid

An important support scheme offering government-backed loans to small businesses will be extended a further two years, the government announced last week. It is hoped the continued grant will help with stimulating local communities, creating jobs and driving economic growth in the UK while the economy recovers.

The Recovery Loan Scheme, originally launched in April 2021 exists to help businesses recovering from the Covid-19 pandemic and has supported 19,000 businesses (600 Welsh ones) with an average £202,000 support per business.

The principle behind the Recovery Loan Scheme remains unchanged: government will underwrite 70% of lender liabilities, at the individual borrower level, in return for a lender fee. Lenders must ensure that the benefits of the government guarantee are passed through to businesses. The maximum loan size remains £2m. 

Recovery Loan Scheme is a government scheme aimed at supporting access to finance for UK businesses. It gives lenders a government-backed guarantee against the outstanding balance of the facility. For further information check out the link below.

Recovery Loan Scheme extended – GOV.UK

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