The Recovery Loan Scheme (RLS), launched 6th April 2021, helps businesses recover from the financial impacts of coronavirus and the transition period. The RLS supports access to finance for UK businesses as they grow and recover from the disruption of the pandemic.
Who can Apply for the Recovery Loan Scheme?
Businesses of all sizes can apply for the Recovery Loan Scheme, so long as the pandemic has affected the business.
The finance can then be used for any legitimate business purpose – however, the lender must be able to afford to take out additional debt finance for these purposes.
Businesses from any sector can apply, except from the following:
- Banks, building societies, insurers and reinsurers (but not insurance brokers)
- Public-sector bodies
- State-funded primary and secondary schools
If you’ve already borrowed from a COVID-19 guaranteed loan scheme (as below), you are still eligible for the RLS.
- The Coronavirus Business Interruption Loan Scheme (CBILS)
- The Coronavirus Large Business Interruption Loan Scheme (CLBILS)
- Coronavirus Bounce Back Loan Scheme (BBLS)
However, the amount you have borrowed under these existing schemes may limit the amount you can borrow under the coronavirus Recovery Loan Scheme. To find out if you’re eligible and just how much you can borrow, contact us today.
How much can you lend?
Term loans and overdrafts: £25,001 – £10 million per business
Invoice or asset finance: £1,000 – £10 million per business
To find out exactly how much you’re entitled to borrow, contact us today.
Types of available finance include:
- Term loan
- Asset finance
- Invoice finance
How Long is the Recovery Loan Scheme?
The maximum length depends on the type of finance you apply for and will be:
- Up to 3 years for overdrafts and invoice finance facilities
- Up to 6 years for loans and asset finance facilities
To find out more about the scheme based on your businesses requirements, contact us today.
End Date and How To Apply
The Recovery Loan scheme is set to end on 31 December 2021, however this date is subject to review.
To apply, please click here to contact us to discuss your requirements and application.