Recovery Loan Scheme offers over £63m of lending to smaller businesses in Northern Ireland

The British Business Bank has announced that over £63million has been offered by accredited lenders to smaller businesses in Northern Ireland through the Recovery Loans Scheme.

To date £53.4million has been drawn down through 309 facilities as businesses steer a path towards sustainable recovery.

Total funding offered from the scheme represents 1% of the national total, slightly below the relative size of the nation’s business population (3%).

A total of £4.51billion of lending has been offered through over 20,643 facilities across the UK, £3.83billion 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.

However 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.

The government has now announced that there will be a successor scheme to Recovery Loans Scheme, which will open for applications in August 2022. Further details will follow when the scheme goes live next month.

Highlighting the importance of the Recovery Loans Scheme Susan Nightingale, UK Network director, Northern Ireland, British Business Bank, explained that nearly 300 businesses across Northern Ireland have taken out loans.

She continued: “The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably.

“Nearly 300 businesses across Northern Ireland have taken out loans under the Recovery Loan Scheme.

“This will better position them to confront both the challenges and opportunities that are ahead.”

Data as provided to British Business Bank by Recovery Loan Scheme delivery partners as at July 12 2022.