Date26 Jul 2022
CategoryBanking & Finance
The Recovery Loan Scheme (RLS) was first introduced in April 2021, and it was subsequently scheduled to run until 31 December 2021. This, however, was originally extended by Government until 30 June 2022.
While it is expected that the ‘new iteration’ of the scheme will remain largely the same, the Chancellor, Nadhim Zahawi, commented: “recognising that businesses and the UK more generally are now in a better position than they were during the pandemic, lenders may now require a personal guarantee from the borrower, in line with standard commercial practice.”
The loans remain for up to £2 million and offer a lifeline to businesses grappling with cost pressures amid soaring inflation. The finance may be used for any legitimate purpose, including cashflow, investment and growth, but the businesses must be able to afford the additional debt finance required.
The finer details are to be announced when the fund opens for applications from August 2022. We will communicate any extra update in due course.
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If you have any queries regarding the Recovery Loan Scheme, please get in touch with your usual Azets contact.