The Recovery Loan Scheme has been extended until June 2022. Announced in the Autumn Budget 2021, the extension scheme has minor eligibility changes.

The Recovery Loan Scheme was launched in April 2021 as part of government-guaranteed finance throughout 2021, primarily in response to COVIV-19. The scheme was extended from 1 January 2022 until June 2022.

From 1 January 2022, the following changes will come into force:

From 6 April 2021 companies could apply for loans to support their businesses. It was originally launched In preparation for non-essential retail and outdoor hospitality reopening. In particular, HM Treasury identified coffee shops, restaurants, hairdressers and gyms.

The original terms of the Recovery Loan Scheme still apply, taking into account the newly announced limitations:

The scheme, which was announced at Budget 2021 and ran until 31 December 2021. It will be administered by the British Business Bank, with loans available through a network of accredited commercial lenders with 26 already accredited. 

The Recovery Loan Scheme can be used as an additional loan on top of support received from the emergency schemes

Useful guides on this topic 

COVID-19: Loan funding
COVID-19: different types of loan funding. All loan funding is repayable. 

COVID-19: Government support tracker
This tracker covers measures announced by the government to support individuals and businesses, as we get through COVID-19.

HMRC give September deadline for bad debt collection
HRMC have published its policy document, 'Collecting tax debts as we emerge from coronavirus (COVID-19)'. It warns that should companies or individuals ignore HMRC, the agency would initiate enforcement action after a September 2021 deadline.

External links

The Recovery Loan Scheme

British Business Bank Recovery Loan Scheme: current accredited lenders

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