Update (29th October 2021):
During the Autumn Budget 2021, the Chancellor announced that the Recovery Loan Scheme would be extended until 30 June 2022.
From 1st January 2022, the following changes will come into effect:
These changes will apply to all offers made from 1 January 2022.
We are now in Q4 and there are less than 90 working days left of the year. It is critical that businesses begin planning for 2022. It’s been a difficult 18 months and now it is important for businesses to have a clear post Covid-19 recovery plan in place.
An important option for businesses is the Government’s Recovery Loan Scheme (RLS), which aims to support UK companies trying to access finance which is needed in recovering from the COVID-19 pandemic.
Simon Michaels shares his analysis of the scheme and outlines why this could be an opportunity for businesses to consider consolidating their current debt:
“A vital part of year end planning with our clients is to focus on cash planning and forecasts for the next 12 months. Whatever stage of your business lifecycle, it is never too late to see the benefits of a formal business plan. Planning ahead to tackle potential bumps in the road is essential. If you are seeking financial assistance through additional sources of finance, you will once again need to demonstrate that your business is viable and provide a narrative around the business strategy. As we approach the end of the year, I would urge businesses to think seriously about their 2022 strategy and the next steps needed to get there.”
About the scheme:
The RLS has been designed to help businesses of any size as they grow and recover from the disruption of the Covid-19 pandemic. It launches on 6 April and is open until 31 December 2021 (subject to review).
Who is eligible?
How long are the loan repayments?
How much can a company borrow?
Who cannot apply?
Businesses from any sector in the UK can apply, except:
If you have any questions regarding the Recovery Loan Scheme or are interested in applying for the scheme, please contact HW Fisher.