Simply Business homepage
  • Business insurance

    Business insurance covers

  • Support
  • Claims
  • Sign In
Call Us0333 0146 683
Our opening hours
Knowledge Centre

Government-backed small business loans could be here to stay

1-minute read

Sam Bromley

6 April 2022

Share on FacebookShare on TwitterShare on LinkedIn

The government is talking with bank executives about introducing a permanent replacement for Covid-19 government-backed loan schemes.

These loan schemes were introduced during the pandemic to help struggling businesses stay afloat, but the government’s focus this time will be more on helping small businesses to grow.

Get small business guides and news straight to your inbox

Your email address will be used by Simply Business so that we can send you the latest guides, offers and tips. You can unsubscribe from these emails at any time. For more information, check out the Simply Business privacy policy.

Loans to help small business growth

According to the Financial Times, government officials have been talking with bank executives about the viability of a new government-backed loan scheme.

During the coronavirus pandemic, the government created various loan schemes to help small businesses access cash. As the schemes were guaranteed by the government, businesses didn’t have to pass commercial lending’s more stringent eligibility criteria.

Whereas those loan schemes (including Bounce Back Loans and Coronavirus Business Interruption Loans) were designed to help businesses survive, any new scheme “would be on supporting growth in UK businesses, including those in “levelling-up” areas of the North,” according to the Financial Times.

A new scheme would therefore allow small businesses otherwise locked out of commercial lending to access finance at affordable terms.

The Financial Times says that the scheme would work alongside commercial lending and the government is currently discussing:

  • the level to set the guarantee
  • whether personal guarantees are needed
  • what businesses should be eligible

A government official told the Financial Times that no decision has been made about progressing with a new scheme, but said there's an "acceptance" that one is needed as relief against future disruptive events.

What other support can small businesses access?

It may be some time before we see such a government-backed loan scheme. The previous schemes have been criticised as being open to fraud, so the government will want to get the application process right.

What’s more, the Recovery Loan Scheme is still open – it doesn’t close until 30 June 2022.

Have a look at our guide to small business grants for money you don’t have to pay back.

Our Business Boost cash prize will also be back this year – in 2021 we gave away £25,000 to help our winner grow their business.

Read more about Business Boost and sign up to be one of the first to know when our grant opens again.

Would you use a government-backed loan scheme in the future? Let us know in the comments below.

Ready to set up your cover?

As one of the UK's biggest business insurance providers, we specialise in public liability insurance and protect more trades than anybody else. Why not take a look now and build a quick, tailored quote?

Start your quote
Photograph 1: djile/stock.adobe.com

We create this content for general information purposes and it should not be taken as advice. Always take professional advice. Read our full disclaimer

Find this article useful? Spread the word.

Share on Facebook
Share on Twitter
Share on LinkedIn

Keep up to date with Simply Business. Subscribe to our monthly newsletter and follow us on social media.

Subscribe to our newsletter

Categories

Popular articlesBusiness resources from FarillioGeneral businessGuestInsuranceLandlordLandlord resources from FarillioLegal and financeMarketingNewsOpinionProperty maintenanceTradesmanCovid-19 business support hub

Insurance

Public liability insuranceBusiness insuranceLandlord insuranceTradesman insuranceCharity insuranceNot for profit insuranceRestaurant insuranceCommercial van insuranceInsurers

About

About usOur teamAwardsPress releasesPartners & affiliatesOur charitable workModern Slavery ActSocial mediaSite map

Customer support

Contact & supportPolicy renewalMake a claimProof of policyComplaintsAccessibility

Address

6th Floor99 Gresham StreetLondonEC2V 7NG

Sol House29 St Katherine's StreetNorthamptonNN1 2QZ

Careers

Careers at Simply BusinessTech careersCurrent opportunities

Benefits

BenefitsRefer a friendFinance

Legal

Terms & conditionsPrivacy policyCookie policyVuln Disclosure policy

Knowledge

Knowledge centreOpinionsMicrosites

© Copyright 2022 Simply Business. All Rights Reserved. Simply Business is a trading name of Xbridge Limited which is authorised and regulated by the Financial Conduct Authority (Financial Services Registration No: 313348). Xbridge Limited (No: 3967717) has its registered office at 6th Floor, 99 Gresham Street, London, EC2V 7NG.