The Recovery Loan Scheme (RLS) is open for applications and will run until 31 December 2021, subject to review.

The loan is designed to support businesses across the UK as they recover following the coronavirus pandemic. Businesses can use the loan to invest in their future growth and manage cashflow, however they must be able to afford to take out additional debt finance for these reasons.

Finance available

Lenders will be able to provide finance as either a term loan, overdraft, invoice finance or asset finance.

  • The maximum amount of a facility provided is £10m per business (£30m per group);
  • Minimum facility sizes vary, starting at £1,000 for asset and invoice finance and £25,001 for term loans and overdrafts;
  • The term length for loans and asset finance is from three months up to six years;
  • The term length for overdrafts and invoice finance is from three months up to three years;
  • Businesses must cover the costs of interest payments and any fees associated with the RLS facility; and
  • The annual effective rate of interest and upfront and other fees cannot be more than 14.99%.

For those businesses borrowing £250,000 or less, the lender will not take any form of personal guarantee. The lender has the discretion to decide whether to take personal guarantees for finance of more than £250,000. No personal guarantees can be held over Principal Private Residences.

Eligibility

Businesses must be able to confirm that they

  • Have been impacted by Covid-19;
  • Have been carrying out trading activity in the UK; and
  • Have a viable business proposition – lenders can use their discretion to disregard short-term to medium-term performance concerns instigated by the coronavirus pandemic.

There is no turnover limit for businesses accessing this scheme.

Businesses are still eligible to apply if they have already received funding through the Bounce Back Loan Scheme or the Coronavirus Business Interruption Loan Scheme. However, the amount borrowed under these schemes may affect the finance available through the RLS.

Public sector bodies and state-funded primary and secondary schools are not eligible.

How to apply

The RLS is available through a number of British Business Bank accredited lenders.

Businesses should approach the lender themselves, through their website. The amount of finance offered varies between lenders and not every lender can provide all of the different types of finance available through the scheme. Please see the lenders’ websites for more information on the amounts they are able to offer.

Click here to find an accredited lender.