Recovery Loan Scheme: 2 Year Extension
Image from official Government Press Release
You may be aware that the Recovery Loan Scheme ended on the 30th of June 2022 however, on the 20th of July 2022 the Government announced that they have extended the scheme for a further two years.
The Recovery Loan Scheme originally launched in April 2021 was introduced to help businesses recover from the impacts of the Coronavirus pandemic. During that time, the scheme has supported almost 19,000 businesses with an average of £202,000 in support.
The extension provides further government support for businesses who are faced with cost pressures and adds to measures already announced by the Chancellor, such as increasing the Employment Allowance, slashing fuel duty and introducing a 50% business rates relief for eligible high street businesses.
Business Secretary Kwasi Kwarteng said: “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”.
Image from official Government Press Release
Are there any changes to the Recovery Loan Scheme criteria?
Chancellor of the Exchequer, Nadhim Zahawi stated that the principle behind the extended Recovery Loan Scheme remains unchanged. The Government will underwrite 70% of lender liabilities and the maximum loan size remains at up to £2million.
However, recognising that businesses and the UK are now in a better position in general than they were during the pandemic, lenders may now require a personal guarantee from the borrower, in line with standard commercial practice.
How have we been able to help businesses with the Recovery Loan Scheme?
The scheme as a whole has supported over 16,000 businesses in England, 1,000 businesses in Scotland, 600 Welsh businesses and 300 in Northern Ireland.
Here at Amplo Commercial Finance, we have been able to help a number of clients successfully apply for the Recovery Loan Scheme. Some of our highlights are:
Engineering Company – £175,000
Our client was looking to consolidate their Coronavirus Business Interruption Loan and another loan that required a personal guarantee. Now they have a low interest Recovery Loan Scheme with no personal guarantee.
Kitchen Design Company – £150,000
Our client were looking to consolidate a Coronavirus Business Interruption Loan and expand their business further by adding another showroom.
Agricultural Business – £75,000
A local Agricultural Business that had faced supply issues due to COVID and Brexit – the funds will allow them to be able to purchase and hold additional stock.
Accountancy Firm – £75,000
During the pandemic, our client has been experiencing rapid growth and had the opportunity to purchase another business. Our client was approved for the full amount they required – this provided them with a fully unsecured facility that will ensure them to make the acquisition whilst spreading the cost over the next 72 months.
Windscreen Repair Company – £30,000
Our client runs a windscreen repair company and wanted to apply for the Recovery Loan Scheme to help with cash flow and to invest in franchising their business.
Electrical Contractors – £25,001
The Recovery Loan Scheme was used to facilitate planned growth whilst solving an immediate cash flow problem due to the additional amount of materials being purchased and increased in staff wages.
Are you looking to apply for Funding?
If you’re looking to apply for the Recovery Loan Scheme or wish to find out what types of commercial finance funding are available for your business, get in touch with our team for a no-obligation discussion!
Call the team on 01270 443510 or complete our contact form and we’ll be in touch whenever is best for you.
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Crewe, Cheshire, CW1 6ZQ
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