The British Business Bank has announced today (July 20 2022) that a new version of the recovery loan scheme will open for applications in August 2022. Full details will not be available until August but it has been indicated that lenders will be encouraged to ask for personal guarantees from the borrowers despite the government underwriting 70% of the borrowings.

Mark Marsh from Stepchange Business Growth says, “It’s great to see that the scheme will be extended and can build upon the £4.5 billion already offered to small UK business. It’s clear to me that with rising input costs and firms struggling to find, train and retain employees, that this scheme will be pivotal in business growth and survival over the next 6 to 12 months. I do however have concerns that lenders may be asking for personal guarantees from the business owners or directors which could impact on the uptake – this seems to be contradictory to the requirements that the government guarantee is passed down to the business.”

“Business should certainly shop around, not only for best rates and terms, but also to ascertain which lenders have less onerous conditions.”

If you are a small business wishing to apply for a business loan then contact us. We have over 30 years experience in applying for small business loans handling everything in the application process from budgeting/ forecasting to due diligence.