Region taps into £475m of financial support through Recovery Loan Scheme

More than 2,100 North West firms have used the Government’s Recovery Loan Scheme, new figures from The British Business Bank have revealed.

Through accredited lenders, more than £457m has been offered to smaller businesses in the region as they steer a path towards a sustainable recovery.

Of the £457.2m of total funding offered through 2,176 facilities, £387.4m has been drawn down through 1,993 facilities.

Total funding offered from the scheme represents 10% of the national total, broadly in line with the relative size of the region’s business population.

A total of £4.51bn of lending has been offered through more than 20,643 facilities across the UK – £3.83bn has been drawn down through 18,338 facilities.

The Recovery Loan Scheme launched in April 2021 and was originally scheduled to run until December 31, 2021.

At Autumn Budget 2021, the Government extended the scheme by six months to June 30, 2022 and made some adjustments to its terms.

The Government provides a guarantee of 80% for loans made before January 1, 2022, and 70% for loans after that date. The borrower remains 100% liable for the debt.

And the Government has further announced that there will be a successor scheme to RLS, which will open for applications in August 2022.

Dr Sophie Dale-Black, UK network director, North, British Business Bank, said: “The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably.

“Nearly two thousand businesses across the North West have taken out loans under the Recovery Loan Scheme. This will better position them to confront both the challenges and opportunities that are ahead.”