Published: 25/05/2022 By Hannah McCormackProviding access to finance for UK businesses was the reason for the Recovery Loan Scheme; the scheme helps businesses access loans and other forms of finance of up to £2 million to aid in the transition back to normality after the pandemic. It is currently still open to businesses of small and medium size in order to support them through the recovery phase but not for long!
With only just over a month left, the Recovery Loan Scheme will continue to accept new applications until 30 June 2022 so get in there quick if you are considering applying. The Government will guarantee 70% of the finance to which ever lender is chosen but you will be 100% liable for the debt.
Using the British Business Banks website you can see which loans are available through a mix of accredited lenders as well as apply for the loan.
To be eligible for the Recovery Loan scheme your business must be trading in the UK, still viable if the pandemic had not occurred, has been adversely impacted by the pandemic and is not in any form of insolvency proceedings.
Even the businesses that received funding from earlier Government support schemes are still eligible to access funds from the Recovery Loan scheme as long as they meet the eligibility criteria.
The only businesses who are not allowed to apply for this scheme are the following:
- banks, building societies, insurers and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
Time is running out to get any further funding, so take action today and always ensure you are sticking to the guidelines and required criteria, see our last blog on the increase in bans for directors as HMRC are cracking down on individuals who fraudulently took out funding.
Have you considered our fee protection insurance? It will cover you for any professional fees from representing you in the event of an HMRC enquiry. If you would like information on our fee protection insurance, please visit our fee protection page here or call us on 020 86617878