Over £4.3bn of Recovery Loan Scheme loans drawn by smaller UK businesses
The British Business Bank announces today that smaller UK businesses have drawn down £4.33 billion through 20,100 facilities under the first two iterations of the Recovery Loan Scheme (RLS).
‘RLS iterations 1 & 2, which made total offers of £ 4.51 billion through 20,643 facilities, were closed to new applications on 30th June 2022. Borrowers were required to make a first drawdown within six-months of an offer being made.
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 provided a guarantee of 80% for loans offered before 1 January 2022 and 70% for loans offered on or after that date. The borrower remains 100% liable for the debt.
On the 1st August 2022 the British Business Bank released details of a third iteration of the Recovery Loan Scheme. This new iteration of the Recovery Loan Scheme continues to be available through participating lenders.
Latest data suggests businesses have made a positive start to paying back their loans, with the majority of businesses meeting monthly repayments, and that rates of suspected fraud in the scheme remain low. Further details of the performance of loans under RLS iterations one and two, including rates of repayments, arrears, defaults and claims are published on the British Business Bank website: https://www.british-business-bank.co.uk/recovery-loan-scheme-iterations-1-2-performance-data-as-at-31-december-2022/
Notes to editors
About the British Business Bank
The British Business Bank is the UK government’s economic development bank. Established in November 2014, its mission is to drive sustainable growth and prosperity across the UK and to enable the transition to a net zero economy, by improving access to finance for smaller businesses. Its remit is to design, deliver and efficiently manage UK-wide smaller business access to finance programmes for the UK government.
As well as increasing the supply and diversity of finance for UK smaller businesses through its programmes, the Bank works to raise awareness of finance options available to smaller businesses. The British Business Bank Finance Hub provides independent and impartial information to businesses about finance options, featuring short films, expert guides, checklists and articles from finance providers to help make their application a success.
The British Business Bank is also responsible for administering the government’s three Coronavirus loan schemes and its Future Fund, together responsible for delivering £80.4 billion in finance to 1.67 million businesses. These schemes are now closed to new applications.
British Business Bank plc is a public limited company registered in England and Wales, registration number 08616013, registered office at Steel City House, West Street, Sheffield, S1 2GQ. Wholly owned by HM government, the Bank and its subsidiaries are not banking institutions and do not operate as such. They are not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). A complete legal structure chart for the group can be found at the British Business Bank.
¹ Figures as at end March 2022
² Figures as at end March 2022