The scheme was due to end on 31 December this year, but has now been extended until 30 June 2022.
According to the British Business Bank, only 5,137 UK businesses have taken advantage of the scheme thus far, though it is expected and hoped that this extension will prompt more businesses to take part in the scheme and give themselves more time to recover from the pandemic.
What is the Recovery Loan Scheme?
The Recovery Loan Scheme (RLS) enables UK businesses of any size to access loans and other kinds of finance of up to £10m per business.
The funding can be used for any legitimate business purposes, including business growth and investment.
The government will continue to guarantee 80% of the finance, though this will reduce to 70% after January 1 2022, and no personal guarantees will be needed for less than £250k.
Businesses that have already received support under existing COVID-19 guaranteed loan schemes (such as CBILS and Bounce Back Loans) will still be eligible to access the RLS.