Re-named scheme expected to support 11,000 businesses
The third iteration of the Recovery Loan Scheme – which is due to end in June 2024 – will be extended and renamed as the Growth Guarantee Scheme.
The terms of the scheme will remain unchanged, ensuring continuity and consistency for lenders and the business community. By providing a 70% guarantee to participating lenders on finance of up to £2m offered to smaller businesses, the scheme is expected to support 11,000 businesses between 1 July 2024 and 31 March 2026.
The first two iterations of the Recovery Loan Scheme, designed to support access to finance and growth for UK businesses as they recovered from the Covid-19 pandemic, enabled £4.3bn of finance to smaller UK businesses.
The third iteration of the scheme has offered more than £1bn of finance since its launch in August 2022.
Approximately 80% of facilities under the third iteration of the scheme have been offered outside of London, and more than 90% of the businesses supported had fewer than 50 employees.