The British Business Bank has announced that, through the Recovery Loan Scheme, accredited lenders have offered over £1bn to smaller businesses in London as they steer a path towards a sustainable recovery.
Of the £1.01bn of total funding offered through 3,681 facilities, £905.4m has been drawn down through 3,312 facilities. Total funding offered from the scheme represents 24% of the national total, above the relative size of the capital’s business population (19%).
A total of £4.51bn of lending has been offered through over 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 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 made before 1 January 2022 and 70% for loans after that date. The borrower remains 100% liable for the debt.
The government has announced that there will be a new iteration of the Recovery Loan Scheme, which will open for applications in August 2022. Further details will follow when the scheme goes live.
Steve Conibear, UK Network Director, London, British Business Bank, said:
“The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably. Over three thousand businesses across London have taken out loans under the Recovery Loan Scheme. This will better position them to confront both the challenges and opportunities that are ahead.”