Recovery Loan Scheme extended
N.B.
There is now no requirement for businesses to confirm they have been affected by COVID-19.
On 20 July 2022, HMRC announced that the Recovery Loan Scheme (RLS) will be extended to run for another two years. This is a vital support scheme that helps UK businesses access finance as they look to invest and grow.
The scheme supports a maximum borrowing of up to £2 million, which is the same as the previous iteration of the RLS. The terms of the loan vary from 3 months to 6 years.
70% of the loan will be secured by the UK government, meaning that the government guarantee 70% of the loan amount that the lender could lose if the business is unable to make the repayments.
Basic eligibility criteria
Up to £45m turnover
50% of turnover must be from trading activity
The annual interest rate cannot be more than 14.99%
Businesses must use the finance for any legitimate business purpose – including managing cashflow, investment and growth. However, businesses must be able to afford to take out additional debt finance for these purposes.
