Government funding became a lifeline for many business-owners during COVID-19. However, even beyond times of economic crises, Government schemes and funding initiatives remain an important source of support for SMEs and growing businesses.
In recent weeks, HM Revenue & Customs (HMRC) has confirmed the extension of both the Recovery Loan Scheme (RLS) and the Help to Grow: Digital Scheme.
Recovery Loan Scheme
HMRC launched the Recovery Loan Scheme in April 2021 and has now extended it for a further two years.
It’s hoped that this will bring comfort to UK businesses who are still facing challenges as a result of the pandemic, drive growth, create jobs and stimulate the economy.
The Government have agreed to continue to provide funds via the RLS, providing loans up to £2m, in much the same way as before.
The Government will underwrite 70% of lender liabilities, at the individual borrower level, in return for a lender fee.
Lenders must pass the benefits of this guarantee on to applicants.
However, recognising that businesses – generally speaking – are now in a better position than they were during the pandemic, lenders may require a personal guarantee from the borrower, in line with standard commercial practice.
Help to Grow: Digital Scheme
The Help to Grow: Digital scheme is all about helping UK businesses to adopt technology. Doing so facilitates competition and can improve profitability.
The scheme was previously open to businesses with over 5 employees, providing discounts worth up to £5,000 on approved software.
Now, the scheme is open to businesses with between 1-249 employees, meaning many hundreds of thousands more stand to benefit.
In addition, e-Commerce software will now also be available under the scheme.
A full list of the eligibility criteria for the Help to Grow: Digital scheme can be found on GOV.UK, here.
How can George Hay help?
We support hundreds of businesses, across Cambridgeshire, Hertfordshire, Bedfordshire and throughout the UK, just like yours.
Our advisers can help you to determine your eligibility for funding, if this is something you are unsure about. In addition, we can assist you with the provision of supporting documentation for your application, if required.
To discuss your requirements with us in more detail, contact us today.