The Government announced today (20 July 2022) that there will be a successor scheme to the Recovery Loan Scheme, which will open for applications in August 2022. Responsible Finance has been calling for confirmation of a successor scheme and gave detailed proposals to Treasury about a long-term loan guarantee scheme.
Theodora Hadjimichael, chief executive of Responsible Finance, said:
“Small businesses need the right finance at the right time to develop, support jobs and create opportunities. The Recovery Loan Scheme has ensured thousands of viable enterprises could get the financial backing they needed to invest in their communities. It’s great news for our SMEs that the Government has listened to calls from Responsible Finance, the CBI and business leaders about the need for a successor scheme to support sustainable growth for viable businesses. We welcome this confirmation that a successor scheme will open in August. The CDFI sector is committed to making the new scheme a successful policy tool for supporting underserved businesses and communities to grow and prosper.”
Responsible Finance members accredited under the Recovery Loan Scheme have supported over 1,500 businesses and safeguarded almost 6,000 jobs.
- Responsible Finance represents Community Development Finance Institutions (CDFIs), which offer fair and affordable finance to businesses and social enterprises which are creditworthy but excluded or under-served by mainstream lenders.