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Unsecured loans up to £250,000 for businesses affected by Covid-19

Supporting SME's affected by Covid-19

Business Enterprise Fund is a delivery partner for Recovery Loan Scheme (RLS) – supporting eligible businesses across the UK with Recovery loans from £25,001 to £250,000.

Our lending decisions are made by friendly, experienced and knowledgeable investment managers not algorithms. Apply for a loan.

RLS launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.

RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including, managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes. Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.

A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.

At Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022.

From 1 January 2022, the following changes will come into force:

  • The scheme will only be open to small and medium sized enterprises (turnover <£45m)
  • The maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m)
  • The guarantee coverage that the government will provide to lenders will be reduced to 70%
  • These changes will apply to all offers made from 1 January 2022

The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy and 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. Visit www.british-businessbank.co.uk/recovery-loan-scheme.

For early resettlement fees, please refer to Section (4) Repayments of our Terms of Engagement.

  • Our lending decisions are made by humans
  • Borrow £25,001 to £250,000 unsecured
  • Terms up to 5 years
  • Interest and fees to be paid by the borrower from the outset
  • Personal guarantees are not required for RLS loans from BEF
  • The borrower always remains 100% liable for the debt

Recovery Loan Scheme FAQs

What are the key features of the Recovery Loan Scheme?

The key scheme features include:

  • Up to £10m facility per business: The maximum amount of a facility provided under the scheme is £10m per business (maximum £30m per group). Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.
  • 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.

What is the eligibility criteria for the Recovery Loan Scheme?

The eligibility criteria for the Recovery Loan Scheme includes:
  • 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: There is no turnover restriction for businesses accessing the scheme.

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

What documents do I require to support a RLS application?

You will need to provide certain documents when you apply for an RLS backed facility. These include:

  • A completed online application
  • 6 Months bank statements
  • Management accounts
  • Year end accounts
  • 12 Month cashflow forecast
  • A business plan

Decision-making on whether a business is eligible for RLS is fully delegated to the British Business Bank’s accredited RLS lenders.

Where can I get business finance support?

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

Our Offer

Flexible rates, set up and repayment fees

Fixed or variable rate finance available for up to 100% of your funding requirement.

Business with a human touch

Impersonal letters and automated telephone services are not our style, all clients are connected with a member of our team.

We are not algorithm driven

Each client is recognised as an individual and their business is assessed in the same way.

Personal tailored service

Loans available to all sectors that are designed to meet the needs of each client.

Flexible terms up to 5 years

Various repayment options available.

Find support to help you through your application here

The Application Process

Follow these steps to apply. We’re here to help throughout the process.

1

Application

This is where you explain the nuts and bolts of your business. Questions are straight forward and designed to help us understand your need.

2

Finalise

We don’t rely on computer generated decisions! At this point you may be asked to shed light on some further details; your own Investment Manager will be in touch.

3

Go

If your application is successful it’s go time! We’ll transfer funds to your account and you can put them to use right away. If you’re unsuccessful we endeavour to provide feedback and guidance to help you in going forward.

What our clients say

Our clients tell the story best, see how our loans helped them.

"Thanks to the loan, we’re now able to implement our growth plan."

"The support from BEF has enabled us to revamp the deli and maintain our outstanding reputation. Mark and the team were so friendly and helped us through the process every step of the way."

"Throughout our journey so far, we have turned to BEF first for our funding requirements."