Further support for small businesses feeling the squeeze as £4.5 billion Recovery Loan Scheme extended

The Government has extended a vital support scheme offering government-backed loans to small businesses for a further two years

Access to finance

• Scheme supporting access to finance for small businesses extended for two years
• Major backing for businesses facing increased pressures on company finances
• Nearly 19,000 businesses supported since the scheme launched in April 2021

A vital support scheme offering government-backed loans to small businesses will be extended for a further two years. Business Secretary Kwasi Kwarteng announced on Wednesday 20^th July.

To help businesses

The Recovery Loan Scheme, originally launched in April 2021 to help businesses. It gives lenders a government-backed guarantee against the outstanding balance of the facility.

The extension provides further government support for businesses grappling with cost pressures and adds to measures already announced by the Chancellor, such as increasing the Employment Allowance, slashing fuel duty, and introducing a 50% business rates relief for eligible high street businesses.

Business Secretary said: “Small businesses are the lifeblood of the British economy, which is why we are determined to support our traders and entrepreneurs in dealing with worldwide inflationary pressures.”

“The extension of the Recovery Loan Scheme will help ensure we continue to provide much-needed finance to thousands of small businesses across the country, while stimulating local communities, creating jobs and driving economic growth in the UK.”