Recovery Loan Scheme offers over £229m of lending to smaller businesses in Scotland
Accredited lenders have offered over £229 million to smaller businesses in Scotland, through the Recovery Loan Scheme, as they steer a path towards a sustainable recovery, announced the British Business Bank.
Of the £229.7m of total funding offered through 1,148 facilities, £205.7m has been drawn down through 1,054 facilities.
Total funding offered from the scheme represents 5% of the national total, broadly in line with the relative size of the nation’s business population (6%)
A total of £4.51 billion of lending has been offered through over 20,643 facilities across the UK, £3.83bn has been drawn down through 18,338 facilities.
The Recovery Loan Scheme launched in April 2021 and was originally scheduled to run until 31 December 2021. At Autumn Budget 2021, the government extended the scheme by six months to 30 June 2022 and made some adjustments to its terms. The government provides a guarantee of 80% for loans made before 1 January 2022 and 70% for loans after that date. The borrower remains 100% liable for the debt.
The government announced today that there will be a successor scheme to RLS, which will open for applications in August 2022.
Susan Nightingale, UK network director, Scotland, British Business Bank, said: “The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably.
“Around one thousand businesses across Scotland have taken out loans under the Recovery Loan Scheme. This will better position them to confront both the challenges and opportunities that are ahead.”