Businesses are now able to apply for loans to support their business under the Recovery Loan Scheme. 

Key points:

• Available to those who meet the criteria, even if the business has previously received existing Covid-19 loan support.
• Available from 6 April to 31 December 2021.
• Term loans and overdrafts are available from £25,001 - £10 million.
• Invoice finance and asset finance are available from £1,000 - £10 million.
• The government are providing backing of 80% guarantee against the outstanding balance of the facility. 
• The business remains 100% liable for repayment of the facility.
• No personal guarantees need for amounts up to £250,000 and no principal private residences to be accepted as security. 
• Term loans and asset finance available for terms up to six years.
• Overdrafts and invoice finance available for terms up to two years.

Qualifying criteria:

1. Be able to self-certify that it has been impacted by Covid-19;
2. Be UK-based in its business activity and generate more than 50% of its turnover from trading activity
3. Be engaged in trading activity in the UK at the time it draws down the facility;
4. Have a borrowing proposal which would be considered viable by the lender
5. Not be in collective insolvency proceedings
6. If a lender can offer finance on normal commercial terms without the need to make use of the scheme, they may do so.

How do I apply? 

• Loans are available through lenders listed here: https://www.british-business-bank.co.uk/ourpartners/recovery-loan-scheme/current-accredited-lenders/
• These lenders range from high street and challenger banks to asset-based lenders and smaller specialist local lenders.
• The decision as to whether eligible for RLS is fully delegated to the accredited RLS lenders.

If you require further information or guidance in relation to this scheme please contact a member of the team who will be happy to assist.