The British Business Bank recently announced five accredited lenders will be part of the new Recovery Loan Scheme, and more lenders are coming soon ...
If a lender can offer a commercial loan on better terms than the Recovery Loan Scheme, they probably will!
I'm pleased the Government has decided to extend the Recovery Loan Scheme (RLS) for another two years and this will be a boost for struggling businesses as the economy recovers from the pandemic.
"Details were announced on the 1st of August!"
These five accredited lenders are the Bank of Scotland, Lloyds Bank, Royal Bank of Scotland, Coventry & Warwickshire Reinvestment Trust and NatWest. They will offer facilities up to £2m to businesses with a turnover of up to £45m. For any business under the Northern Ireland Protocol, the advance is limited to £1m instead.
I feel the RLS will be a very valuable funding source for some small businesses, but I think the money should be used for specific projects rather than just supporting cashflow. Anything that adds to the resilience of the business going forward would be ideal.
The thing to remember is that if a lender can offer a commercial loan on better terms then they probably will as the use of RLS is at the discretion of the lender.
"Additional lenders are coming soon!"
Many businesses have faced challenges over the last few years. From the pandemic to soaring inflation, it is worrying how many SMEs are finding it difficult to secure lending. Ensuring you have access to funding sources in the near future will be of utmost importance to many.
This new iteration of the Recovery Loan Scheme will help many to recover and grow.
Until next time ...
ROGER EDDOWES Business Godparent
Would you like to know more?
If anything I've written in this blog post resonates with you and you'd like to discover more about the Recovery Loan Scheme, it may be a great idea to give me a call on 01908 774320 and let's see how I can help you.
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Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
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