Recovery Loan Scheme offers over £4.5bn of lending to smaller businesses
The British Business Bank has announced today that, through the Recovery Loan Scheme, accredited lenders have offered over £4.5bn to smaller UK businesses as they steer a path towards a sustainable recovery.
Of the £4.51bn of total funding offered through 20,643 facilities, £3.83bn has been drawn down through 18,338 facilities.
The Recovery Loan Scheme launched in April 2021 and was originally scheduled to run until December 31 2021. However, during the Autumn Budget 2021, the government announced its extension of the scheme by six months to June 30 2022 and made some adjustments to its terms.
The government provided a guarantee of 80 per cent for loans made before January 1 2022 and 70 per cent for loans after that date. The borrower remains 100 per cent liable for the debt.
The government announced today that there will be a successor scheme to RLS, which will open for applications in August 2022. Further details will follow when the scheme goes live.
Catherine Lewis La Torre, CEO, British Business Bank, commented: “The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably.
“Thousands of businesses in all sectors and from right across the UK have taken out loans under the Recovery Loan Scheme. This will better position them to confront both the challenges and opportunities that are ahead.”
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