- Support plan for access to financing for SMEs extended for 2 years
- Important support for companies facing increasing pressure on business finances
- Since the system started in April 2021, nearly 19,000 companies have supported it.
Secretary-General Kwasi Kwaten announced today (Wednesday, July 20) that he will extend his life-sustaining plan to provide government-sponsored loans to SMEs for another two years.
The stimulus loan scheme, first launched in April 2021 to help recover from the Covid-19 pandemic, has helped approximately 19,000 companies with an average of £ 202,000.
The Recovery Loan Scheme (RLS) is a government program that provides access to UK companies’ financing. It gives the lender a guarantee of government support for the unpaid balance of the facility.
The extension will provide additional government support to companies facing cost pressure, including measures already announced by the Prime Minister, including increased employment allocation, reduced fuel taxes and a 50% reduction in commercial tariffs on qualified commercial enterprises. It is done in addition to.
Kwasikwaten Business Secretary said:
“SMEs are the backbone of the UK economy and we are committed to helping businesses and entrepreneurs survive inflationary pressures around the world.
“By expanding our stimulus financing program, we will continue to provide the coveted funding to thousands of SMEs across the country, while revitalizing communities, creating jobs and promoting national economic growth. Can be. UK “
Treasury Minister Nadim Zahawi said:
“SMEs are the driving force behind economic growth and support the work and livelihoods of communities throughout the UK.
“The Stimulus Loan Program has supported thousands of companies over the past year, and this extension will continue to give us access to the funds we need to navigate in the coming months.”
The program has supported more than 16,000 companies in the United Kingdom, 1,000 in Scotland, 600 in Wales and 300 in Northern Ireland.
Examples of companies that have benefited from this scheme are the Leeds-based company Wildfire Marketing, which used loans to hire new staff to support business growth, and the last new western team. Includes the lighting company WhiteLight Ltd, which needed funding for it. .. The end of the show.
The principles behind the Extended Recovery Loan Program have not changed. The government guarantees 70% of the lender’s debt at the individual borrower’s level in exchange for fees from the lender. Lenders need to ensure that the benefits of government guarantees are communicated to businesses.
The maximum loan amount remains up to £ 2m. However, recognizing that businesses and the UK are generally in a better position than during a pandemic, lenders can now claim personal guarantees from borrowers in accordance with standard business practices.
Chris Wilford, Director of Financial Services Policy at CBI, said:
“In the face of severe economic headwinds and ongoing cost pressure, these are still difficult times for businesses.
“Cash flow issues are occurring in the minds of many business owners, so continued access to government-sponsored loans provides great comfort.
“This next phase of the recovery loan scheme provides an essential lifeline for businesses. The CBI also works with governments and creditors to give businesses access to the funds they need to grow. “
Shevaun Haviland, Chief Executive Officer of the British Chamber of Commerce, said:
“After a two-year turmoil due to a pandemic and a global economic downturn, the BCC called for this continued financial support for businesses. The two-year extension of the stimulus package faces many rising costs. It will be a lifeline for companies.
“Companies in need of this additional support need access to the program as soon as possible to ensure that they get help before it’s too late.”