More than £300m of recovery loan scheme finance (RLS) has been arranged through Funding Options so far, the business finance aggregator has revealed.
Funding Options unveiled the figure in a post on Twitter today (16 November).
It said it has helped businesses connect with £325m worth of RLS funding to enable them to recover from the pandemic.
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.
It was launched in April to replace the coronavirus business interruption loan scheme.
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 recently announced an extension to take the scheme into 30 June 2022.
Chancellor Rishi Sunak’s Autumn Budget also unveiled changes to the scheme. The finance available to businesses under RLS will drop next year to a maximum of £2m and the government guarantee will be reduced from 80 per cent to 70 per cent.
Only two peer-to-peer lenders are currently accredited to provide RLS finance, Funding Circle and Assetz Capital.
Stuart Law, chief executive of Assetz Capital, told Peer2Peer Finance News earlier this month that the platform will continue offering RLS loans but at a limited capacity following the changes to the scheme.