Just two peer-to-peer lenders have been authorised to offer the recovery loan scheme (RLS).
Funding Circle and Assetz Capital are the only two P2P platforms accredited to offer funding under the government-backed scheme, out of 74 approved firms.
In contrast, the coronavirus business interruption scheme – which preceded the RLS – included more P2P platforms such as Folk2Folk and LendingCrowd.
After a slow start, RLS accreditation began picking up pace towards the beginning of the fourth quarter of the year. The scheme is designed to help UK businesses navigate the post-Covid economic landscape by providing up to £10m via term loans, overdraft facilities, invoice financing or asset financing.
It was due to close on 31 December 2021, but the Treasury has recently announced an extension to take the scheme into 2022.
The RLS provides lenders with a government-backed guarantee of 80 per cent of the value of each loan, in the event that the borrower cannot repay.