Businesses are still recovering from the lockdown and the Covid-19 pandemic. New challenges are emerging with increasing costs coming from all sides. The government has made the decision to extend the vital support scheme that provided Government-backed loans to almost 19,000 UK SMEs since the scheme’s inception in 2021. We explain more below.
An excellent article from our friends at PMD Business Finance explains that on 20th July 2022, Business Secretary Kwasi Kwarteng made the announcement that the Recovery Loan Scheme (RLS) will be extended for an additional 2 years.
This is good news at a worrying time for many SMEs.
"Although businesses are recovering from the Covid-19 pandemic, new challenges surrounding cost pressures are emerging. The government has made the decision to extend the vital support scheme that provided Government-backed loans to almost 19,000 small UK businesses since the scheme’s inception in 2021. Applications for the extended RLS scheme will open August 2022.
The scheme aims to provide major backing for UK businesses facing increasing pressures on company finances. This gives lenders a government-backed guarantee against the outstanding balance of the facility. However, upon recognising that businesses and the UK more generally are in a better position than they were during the pandemic, lenders may now require a personal guarantee from the borrower."
Clink the link for further details regarding the extension of the Recovery Loan Scheme.
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