The government is currently communicating with bank executives about implementing a
replacement for the Covid-19 government-introduced loan schemes. These loan schemes
were launched during the pandemic to help businesses stick around whilst they were
struggling due to the effects of Covid.
With these new loans though, the government is planning to focus on assisting small
businesses with their growth.
Loans to aid small business growth
As the Covid-19 loan schemes were pledged by the government, it wasn’t mandatory for
businesses to pass commercial lending’s criteria of eligibility. Therefore, any new scheme
would allow small businesses normally locked out of commercial lending to access financial
support with affordable terms.
According to the Financial Times, the scheme would sit alongside commercial lending and
that the government is currently in talks about what businesses will be eligible and the level
to set the guarantee.
What other financial help can small businesses access?
It may take a while for the government scheme to be put in place, especially since a
government official told the Financial Times that as of yet, they are still waiting for a
decision to be made regarding the progression of the new scheme. As well as this, past
schemes have been judged for being susceptible to fraud. This time around, the government
wants the application process to be right.
It is worth noting that the Recovery Loan scheme is currently still open – and won’t be
closed until 30th June 2022. The scheme is open to businesses of any size to support them
in recovering from the pandemic and transition period.
The terms and amounts offered are at the discretion of participating lenders, but up to £10
million is available per business. To apply, you will need to show that your business has been
impacted by the pandemic. Even if your business has previously received financial support
throughout the Covid pandemic, you are still eligible to access finances from this scheme.
You could also have a look at one of our previous articles that discusses small business
grants.
To conclude
So there you have business loans that are likely to stick around. We hope that this article
has been useful to you and that you have enjoyed reading. We also wish you luck in securing
the funding that your business needs.