The scheme had closed on 30th June 2022, meaning that banks would no longer be able to accept any new loan applications.
The RLS was originally launched in April 2021 to provide Covid-19 related support to businesses recovering from the pandemic.
The scheme is aimed at supporting access to finance for UK businesses and provides lenders with a government-backed guarantee.
To date, the scheme has supported nearly 19,000 businesses with an average of £202,000 in financial support.
The extension provides support for businesses facing increased cost pressures and has been broadly welcomed.
Shevaun Haviland, Director General of the British Chambers of Commerce, said: “After two years of pandemic disruption and with a faltering global economy, the BCC has been calling for this continued financial support for firms. The two-year extension to the Recovery Loan Scheme will be a lifeline for many businesses facing a rising tide of costs.”
Further details about the scheme extension and confirmation of when new applications may be made have yet to be announced. Any delays will cause further disruption and it is critical that businesses who need support gain access to the scheme swiftly to avoid the threat of insolvency.
Date published 21 Jul 2022