The Recovery Loan Scheme is Closed for Applications

About the Recovery Loan Scheme

The Recovery Loan Scheme (RLS) is designed to help businesses affected by Covid-19 access funding for managing cashflow, investment, and growth, on the provision they can afford to take out additional finance for these purposes.

 

Customer Quote

Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.

Key facts

Up to £2m facility per business
The maximum amount of a facility provided under the scheme is £2m per business (maximum £6m per group). Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.

Term length
Term loans and asset finance facilities are available from three months, for up to six years, with overdrafts and invoice finance available from three months, for up to three years.

Interest and fees to be paid by the borrower from the outset
Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.

Access to multiple Covid-19 schemes
Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.

Personal Guarantees
Personal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.

Guarantee to the Lender
The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.

Eligibility Criteria

Covid-19 Impact
The borrower must confirm to the lender that it has been impacted by Covid-19.

UK-based
The borrower must be carrying out trading activity in the UK.

Viability Test
The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19.

Credit and fraud checks for all applicants
Lenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lenders.

Turnover limit
Businesses with a turnover not exceeding £45m per annum.

Please note, the following are not eligible under RLS:

  • Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
  • Public sector bodies
  • State funded primary and secondary schools

If you have any questions, please contact us to discuss or visit the British Business Bank’s FAQs page.

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The Recovery Loan Scheme (RLS) is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. For more information visit british-business-bank.co.uk.

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