Scheme Extention
At theAutumn Budget 2021, the government announced that the Recovery Loan Scheme would be extended by six months to 30 June 2022, with the following changes applying from 1 January 2022:
The scheme will only be open to businesses with a turnover not exceeding £45m per annum
The maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m)
The guarantee coverage that the government will provide to lenders will be reduced to 70%
It is not clear whether the scheme will be extended although it is hoped that it will be. Many lenders are gearing up for the closure of the scheme. If it is not closed it may well be diluted or replaced by schemes similar to the Enterprise Finance Guarantee which was in place before Covid.
If you think that you will need funding under any one of the schemes types of finance (detailed below), you need to act now to avoid disappointment. If you leave it to the last minute it is likely the unless you are at the front of the queue you will miss out! This was the experience of many applicants when the CBILS scheme ended,
Types of finance
A lender can provide up to £2 million as one of the following facilities:
Term loan
Overdraft
Invoice finance
Asset finance
Bridging finance
Please contact Atlas if you need any help with regard to the Recovery Loan Scheme or any other form of finance.