Hidden in the detail of the budget was a six-month extension (to 30 June 2022) of the government’s Recovery Loan Scheme (RLS). Great on the face of it, but such an extension is limited in its scope by reducing the amount available from £10m to £2m, reducing the government guarantee from 80% to 70%, and restricting access to SMEs only. The deadline for the old scheme ends in December.
With all other Ccovid-19 related government backed loans or grants coming to an end and no others in the pipeline, what other financial support is available to SMEs based in the Midlands?
If you have a specific funding requirement and are perhaps unable to raise sufficient funds through traditional sources, it may be worth considering whether there are other sources of government-backed finance available to you. Examples of these include grants from your local council, Local Enterprise Partnerships (LEPs), government grants or other not-for-profit organisations, which are committed to supporting businesses primarily based in the Midlands and whose services are designed to fill gaps in the market and to generate a beneficial impact upon the local community.
Subject to you meeting certain criteria, such as location and number of employees, below are some examples of what funding can be used for:
- Managing and reducing energy costs to improve your business’ impact on the environment
- Investing in capital projects
- Obtaining new premises
- Having access to machinery and equipment – new and used
- Commencing or continuing ground-breaking innovation / research
- Upgrading your vehicle fleet
- Upgrading business broadband to a high-speed connection
The amounts of funding available will vary depending on the purpose and initiative. Further information can be found on the government’s website, or your local LEP growth hub website.