Recovery Loan scheme extended to March 2026

The Recovery Loan Scheme, introduced to help businesses recover from the impact of the pandemic, and which was due to end in June 2024, has been extended to March 2026.

The scheme was originally launched in April 2021 and was due to end this June, but in the Spring Budget 2024 it was announced it would be extended and renamed as the Growth Guarantee Scheme.

Back in the Autumn 2021 Budget, the then Chancellor, Rishi Sunak, announced that the scheme would be extended from 1 January 2022 to 30 June 2022. Due to ongoing economic uncertainty, it was further extended to June 2024.

Applications to the extended scheme opened on 1 August 2022 and remain open until 30 June 2024.

As stated earlier, the Spring Budget 2024 extended and renamed the scheme as the Growth Guarantee Scheme.

Businesses can use the finance for any legitimate business purpose – including managing cashflow, investment and growth.

The scheme provides government-backed access to finance for small businesses that are dealing with the financial consequences of the pandemic. The extension does not change the rules of the scheme.

So, for example, the government will continue to underwrite 70% of a loan, and the maximum that can be borrowed remains at £2m. 

However, lenders may require a personal guarantee from the borrower, in line with standard commercial practice.

The British Business Bank has a summary of the new scheme on its website.

Further help available

We continue to work with our clients on cash flow projections to help them identify when funding may be required for their business.

If you would like our help with identifying possible funding needs, or if your business requires a review, please contact our Restructuring Team or Funding Advisory Team for a conversation.