Today’s announcement (the extension of the Recovery Loan Scheme) comes as no surprise. With inflation rising and consumers spending less, small businesses are taking a hit. It is now essential that businesses in need of the extra support can access the scheme before it’s too late.
Business Secretary Kwasi Kwarteng 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.’
The Recovery Loan Scheme (RLS) is a government scheme aimed at supporting access to finance for UK businesses. It gives lenders a government- backed guarantee against the outstanding balance of the facility. Since launching in April 2021 to help businesses recovering from the Covid-19 pandemic, the scheme has supported 19,000 businesses with an average of £202,000 in support.
In an unstable economic climate with inflation continuing to rise, it’s important for businesses to consider a contingency plan to get them through the months ahead. Chancellor of the Exchequer, Nadhim Zahawi looks at how the RLS has helped UK businesses and said: ‘Examples of businesses which have benefited from the scheme include Leeds-based firm Wildfire Marketing, which used the loan to take on new employees to help the business grow, and White Light Ltd, a lighting firm which required finance to purchase new equipment for the latest West-End shows.’
Chris Wilford, CBI of Financial Services Policy, went on to say ‘With cashflow difficulties at the forefront of the minds of many business owners, continued access to Government- backed loans will be a great comfort. This next phase of the Recovery Loan Scheme will provide a critical lifeline for firms. The CBI will also continue to work with Government and lenders on ensuring businesses have access to finance they need for growth.’
How we can help:
Since we emerged from COVID-19, Moorgate Finance has worked closely with our panel of lenders to provide a range of small businesses the funding they need to not only continue their operations but to grow. We have seen a large number of businesses that need a cash injection for new products, for cash flow, to recruit new staff and to keep going through turbulent times.
We are proud of the customer journey that we have embedded; we are working closely with people and businesses to identify the best options for them. The support system we have in place is designed to reassure and instil confidence so that business owners don’t just feel like they have a life line but so they can use the additional support as part of their wider strategy and long term plans and future growth.
If you require funding for your business and think you are eligible for the Recovery Loan Scheme, please contact us for more information 01908 92 62 62 | firstname.lastname@example.org