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Chancellor to unveil two-year extension to recovery loan scheme | Business News

Jeremy Hunt will announce on Wednesday {that a} lending initiative geared toward smaller corporations can be prolonged till 2026, Sky News understands.

By Mark Kleinman, City editor @MarkKleinmanSky


Jeremy Hunt is to lengthen a key authorities lending programme for an additional two years following pleas from Britain’s military of small companies.

Sky News has learnt that the chancellor will announce in his price range on Wednesday that the recovery loan scheme, which was reintroduced in the summertime of 2022, is to be prolonged till 2026.

Sources stated that Treasury officers had heeded calls from enterprise teams that the expiry of the present scheme in June would signify a cliff-edge for smaller corporations in want of loan ensures.

Kemi Badenoch, the enterprise secretary, is known to have urged the chancellor to again the RLS’s continued operation.

Under the scheme, the federal government ensures 70% of loans of up to £2m to corporations which have a turnover of lower than £45m.

Its launch adopted huge state intervention within the enterprise lending market in the course of the COVID pandemic, with a collection of loan schemes geared toward corporations of all sizes.

In its submission to the Treasury forward of the price range, the Federation of Small Businesses stated: “The extension of the recovery loan scheme in 2022 was essential in serving to small corporations make investments and develop.

“It ought to now be prolonged past its present finish date, in July 2024.

“It is performing nicely and an necessary characteristic of the UK’s funding ecosystem and brings many advantages within the case of financial slowdown.”


This is a restricted model of the story so sadly this content material just isn’t out there.

Open the complete model

The Treasury declined to remark, whereas the Department for Business and Trade didn’t reply to enquiries.



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