
The recent Autumn Budget & Spending Review saw Rishi Sunak announce a six month extension of the Recovery Loan Scheme (RLS) to 30th June 22.
However, the chancellor also outlined a number of changes to the scheme which will come into effect from 1st January 22:
The scheme will only be open to small and medium sized enterprises (SMEs) with turnover less than £45m
The maximum amount of finance available will be £2,000,000 per business (maximum amount per Group will be £6,000,000)
The level of government guarantee provided to lenders will reduce from 80% to 70%*
These changes will apply to all lending offers (under the RLS) made from 1st January 22. With this in mind - and with funders having different lead times - RLS borrowers should check to understand which terms will apply to their application.
Since the scheme was launched in April 21, over £1,000,000,000 has been made available to UK businesses to support their recovery from the COVID-19 pandemic, through 76 accredited lenders. To learn more about how the scheme works and applicant eligibility, you can access our comprehensive guide here.
*The government guarantee is to the lender. The borrowing entity will always remain 100% liable for any debt under the RLS.
Comments