Team Lopez – Julia Lopez MP has welcomed that the government has announced an extension to the Recovery Loan Scheme (RLS).
RLS is a government scheme, facilitated by the Government-owned British Business Bank and delivered through our delivery partners. It is aimed at supporting access to finance for UK businesses and gives lenders a government-backed guarantee against the outstanding balance of the facility.
The newest iteration of RLS will open for applications in August 2022. The maximum loan size remains at up to £2m. However, recognising that businesses (and the UK more generally) are now in a better position than during the pandemic, lenders may now require a personal guarantee from the borrower, in line with standard commercial practice. Further details on RLS can be found via this link.
RLS was originally launched in April 2021 and scheduled to run until 31 December 2021 before being extended until 30 June 2022. In that time, RLS has seen £4.5bn of lending offered through more than 20,600 facilities for smaller businesses across the UK. The extension announced today by BEIS will ensure that businesses can continue to access finance as they steer a path towards a sustainable recovery. A full sectoral and regional breakdown of RLS lending to date can be found here.
