The Government has decided to extend the recovery loan scheme for a further two years.
The maximum loan size available for businesses will stay the same at £2 million. Now that businesses are in a better position than during the pandemic, however, lenders will likely require a personal guarantee, in line with standard practice.
Businesses will be able to apply for the scheme in August when the Government releases more details.
The scheme, which was launched in April 2021 to support businesses feeling the impact of the COVID-19 lockdown, has helped 19,000 businesses with an average of £202,000 in support.
Figures from the British Business Bank show that £4.5bn has been lent due to the scheme, although only £3.83bn has been used.
Chancellor Nadhim Zahawi said:
"The recovery loan scheme has supported thousands of businesses over the past year. This extension will ensure they continue accessing the finances they need to navigate the months ahead."
Chris Wilford, director of financial services policy at CBI, said:
"This next phase of the recovery loan scheme will provide a critical lifeline for firms. The CBI will also continue to work with government and lenders on ensuring businesses have access to the finance they need to go for growth."
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