Azets has warned that businesses could face “serious” funding problems unless the Recovery Loan Scheme (RLS) and Coronavirus Business Interruption Loan Scheme (CBILS) rules are amended.
Murdoch MacLennan, banking partner with Azets, is calling upon the government and British Business Bank to extend the RLS further to the end of 2022 and to insist that lenders accept CBILS transferred under the RLS scheme.
The accounting firm suggested that businesses may be hit with refinancing problems in the latter half of 2022 if the RLS is not extended beyond the summer.
RLS is scheduled to end on 30 June 2022 whilst the CBILS scheme came to an end in March 2021.
He said: “The current arrangements mean that it is going to be extremely difficult for businesses with outstanding CBILS or RLS funding to secure continued financial support into the second half of 2022 if not before.
“The CBILS and RLS schemes helped protect countless businesses and jobs, but there is a risk that these rigid rules could start creating extensive problems for those same businesses saved by the schemes.”
He added: “The recent Budget announcement of an RLS extension to 30 June 2022 is not enough. Hopefully the government and British Business Bank will see the merit of a solid extension to the end of 2022 and insisting that CBILS can be rolled over with any refinancing.”