Asked by: Craig Williams (Conservative - Montgomeryshire)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to ensure that charities applying to the Recovery Loan Scheme are not required to demonstrate a negative impact arising from the covid-19 outbreak in order to secure finance.
Answered by Dean Russell
Under the first two iterations of the Recovery Loan Scheme, all applicants had to self-certify that they had been impacted by Covid-19 to access finance through the scheme. This requirement no longer applies to most applicants. Charities can continue to access finance through the scheme where they can self-certify they have been impacted by Covid-19. This exempts them from the requirement to derive at least 50 per cent of their income from trading activity that they would otherwise need to meet to access the scheme.
This provision will cease at the end of the year. All aspects of the Recovery Loan Scheme are under constant review to ensure that the scheme meets its policy objectives.
Asked by: Craig Williams (Conservative - Montgomeryshire)
Question to the Department for Business, Energy and Industrial Strategy:
To ask the Secretary of State for Business, Energy and Industrial Strategy, whether he plans to (a) extend the Government's Recovery Loan Scheme beyond December 2022 for charities, (b) keep the charity small trading exemption at 25% and (c) treat stable grant and donation income as trading income.
Answered by Dean Russell
Charities are currently able to access the Recovery Loan Scheme by self-certifying that they have been impacted by Covid-19. Otherwise, they must derive at least 50 per cent of their turnover from trading activity to access the scheme.
All aspects of the Recovery Loan Scheme are under constant review to ensure that the scheme can meet its objectives.