Originally launched in April 2021 to help businesses recover from the impact of Covid restrictions, the Recovery Loan Scheme has been extended for a further two years.
With the UK still coming to terms with the Bank of England hiking interest rates to 1.75 per cent, and warning of a recession ahead until 2024, the scheme could be a vital lifeline for many businesses.
Back in the 2021 Budget, the then Chancellor, Rishi Sunak, announced that the scheme would be extended from 1 January 2022 to 30 June 2022. However, the ongoing economic uncertainty has led to it being extended again.
Applications to the extended scheme opened on 1 August 2022 and run until 30 June 2024.
The scheme provides government-backed access to finance for small businesses that are dealing with the financial consequences of the pandemic. The extension does not change the rules of the scheme that existed up to 30 June 2022.
However, one alteration under the extension is that lenders may now require a personal guarantee from the borrower, in line with standard commercial practice.
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We are well versed in providing clients cash flow projections for their business to help them identify when funding may be required.
If you would like our help with identifying possible funding needs, or if your business requires a review, please get in touch with our Tax team below.
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