Apr 21, 20222 min read

Covid-19 Business Loans Likely to Stick Around

The government is currently communicating with bank executives about implementing a

replacement for the Covid-19 government-introduced loan schemes. These loan schemes

were launched during the pandemic to help businesses stick around whilst they were

struggling due to the effects of Covid.

With these new loans though, the government is planning to focus on assisting small

businesses with their growth.

Loans to aid small business growth

As the Covid-19 loan schemes were pledged by the government, it wasn’t mandatory for

businesses to pass commercial lending’s criteria of eligibility. Therefore, any new scheme

would allow small businesses normally locked out of commercial lending to access financial

support with affordable terms.

According to the Financial Times, the scheme would sit alongside commercial lending and

that the government is currently in talks about what businesses will be eligible and the level

to set the guarantee.

It may take a while for the government scheme to be put in place, especially since a

government official told the Financial Times that as of yet, they are still waiting for a

decision to be made regarding the progression of the new scheme. As well as this, past

schemes have been judged for being susceptible to fraud. This time around, the government

wants the application process to be right.

It is worth noting that the Recovery Loan scheme is currently still open – and won’t be

closed until 30th June 2022. The scheme is open to businesses of any size to support them

in recovering from the pandemic and transition period.

The terms and amounts offered are at the discretion of participating lenders, but up to £10

million is available per business. To apply, you will need to show that your business has been

impacted by the pandemic. Even if your business has previously received financial support

throughout the Covid pandemic, you are still eligible to access finances from this scheme.

You could also have a look at one of our previous articles that discusses small business

grants.

So there you have business loans that are likely to stick around. We hope that this article

has been useful to you and that you have enjoyed reading. We also wish you luck in securing

the funding that your business needs.