As the UK continues to grapple with the economic fallout of the COVID-19 pandemic, the government has implemented a number of loan schemes aimed at providing financial support to individuals and businesses in need. Here are some government loan schemes to look out for in the UK in 2023.
Bounce Back Loan Scheme (BBLS): The BBLS was introduced in 2020 to provide financial support to small and medium-sized businesses in the UK. The loans are 100% government-backed and allow businesses to borrow up to £50,000, with no interest or repayments due for the first 12 months. The scheme has been popular with businesses, and may still be available to eligible businesses in 2023.
Coronavirus Business Interruption Loan Scheme (CBILS): The CBILS was introduced in March 2020 to support small and medium-sized businesses affected by the pandemic. Under the scheme, businesses can borrow up to £5 million, with the government providing an 80% guarantee to lenders. The scheme was originally set to end in March 2021, but has since been extended several times and may still be available in 2023.
Recovery Loan Scheme (RLS): The RLS was introduced in April 2021 to replace the CBILS and other pandemic-related loan schemes. The RLS provides loans of between £25,000 and £10 million to businesses of all sizes, with the government providing an 80% guarantee to lenders. The scheme is set to run until the end of 2021, but may be extended into 2023.
Future Fund: The Future Fund was introduced in May 2020 to support innovative UK companies that were unable to access other government loan schemes. Under the scheme, the government provides convertible loans of between £125,000 and £5 million to eligible companies, with the loans converting into equity if they are not repaid. The scheme was set to close in January 2021, but has since been extended and may still be available in 2023.
Innovate UK Smart Grants: Innovate UK Smart Grants is a funding scheme that has been in operation for several years. The scheme provides grants to support innovative projects led by UK-based businesses. The scheme is open to businesses of any size and in any sector, but the projects must involve a significant innovation in a technological or scientific area. In addition to providing funding, the Smart Grants scheme also offers businesses access to a range of support and networking opportunities, including mentoring, investor introductions, and market insights. The grants are awarded through a competitive process, with applications assessed on factors such as the level of innovation, the potential economic impact, and the strength of the project team. Grants can be worth up to £2 million, and businesses can apply for up to 70% of their project costs.
Start Up Loans: Start Up Loans was introduced in 2012 by the UK government as part of its commitment to supporting entrepreneurship and small business growth. This government-backed scheme provides loans of up to £25,000 at a fixed interest rate of 6% per annum to individuals looking to start or grow a business in the UK. There are no application fees or early repayment fees, and loan terms range from one to five years. The scheme has since it launch in 2012 provided over £600 million in funding to more than 80,000 businesses across the UK.
It’s worth noting that the availability and eligibility criteria for these loan schemes may vary depending on factors such as the size and type of business, the industry in which it operates, and its financial situation. Businesses should consult with their financial advisors and/or relevant government agencies to determine which loan schemes may be appropriate for their needs.
Get in touch with one of our consultant at Funding Bay to find out what government loan schemes are available to you.
