The Government has extended the Recovery Loan Scheme (RLS) by a further two years, with applications opening in August 2022 – when further details on the scheme will also be released.

The loan was originally introduced in April 2021 to support businesses across the UK as they recovered following the coronavirus pandemic.

British Business Bank figures show that £4.51bn of lending has been offered through over 20,643 facilities across the UK. Accredited lenders have offered £438m to smaller businesses in the East of England – representing 10% of the national total.

Finance available

The structure of the scheme remains essentially the same.

  • The scheme supports access to finance for small businesses;
  • The maximum amount of finance available will be £2 million per business; and
  • The guarantee coverage that the Government will provide to lenders remains at 70%.

A new addition to the criteria is that lenders may now require a personal guarantee from the borrower, in line with standard commercial practice.

Further details on how to apply for the extended RLS will be communicated as they are published.