Coronavirus (COVID-19) Support for Businesses

The Recovery Loan Scheme (RLS)

The new government-backed loan scheme is set to launch on 6 April 2021.

The Recovery Loan Scheme (RLS) is a new loan scheme that will replace the Bounce Back Loan Scheme (BBLS) and Coronavirus Business Interruption Loan Scheme (CBILS/CLBILS) which are due to close for new applicants on 31 March 2021.

The Recovery Loan Scheme launches on 6 April and is open until 31 December, subject to review. 

The scheme supports access to finance for UK business as they grow and recover from the disruption of the COVID-19 pandemic and can be used for any legitimate business purpose, including growth and investment.

Features of the Recovery Loan Scheme will include:

  • Up to £10m facility per business: The maximum value of a facility provided under the scheme will be £10m per business. Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
  • Turnover limit: There will be no turnover restriction for businesses accessing the scheme.
  • Wide range of products: Businesses will be able to choose from a variety of products: term loans, overdrafts, asset finance and invoice finance facilities.
  • Term length: Term loans and asset finance facilities are available for up to six years, with overdrafts and invoice finance available for up to three years.
  • Interest and fees to be paid by the business from the outset: Businesses will be required to meet the costs of interest payments and any fees associated with the facility.
  • Access to multiple schemes: Businesses who have taken out a CBILS, CLBILS or BBLS facility will be able to access the new scheme, although the maximum they are allowed to borrow will depend on their lender’s assessment and scheme requirements.
  • Credit checks for all applicants: Lenders will be required to undertake credit and fraud checks for all applicants. When making their assessment, lenders may overlook concerns over short-to-medium term performance owing to the pandemic. The checks and approach may vary between lenders.

For more information, please visit the British Business Bank website.

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