The Autumn Budget 2021 (which can be found summarised on a previous blog post), outlined many changes that affect businesses and individuals, outlined below are the changes to the Recovery Loan Scheme;
Changes from 1st January 2022:
- Scheme extended until 20th June 2022
- Scheme is only open to SMEs (which is defined as a company with less than 250 employees, less than £41m turnover and under £35.2m balance sheet).
- The maximum amount of finance available is £2 million per business
- The guarantee coverage that the government will provide to lenders will be reduced to 70%
The maximum length of the facilities are:
- Up to 3 years for overdrafts and invoice finance facilities
- Up to 6 years for loans and asset finance facilities
More information can be found on the Government website https://www.gov.uk/guidance/recovery-loan-scheme
Please don’t hesitate to contact us if you are interested in applying or just finding out more about the scheme.
Phone: 0345 5050 888
Email: [email protected]
