The Recovery Loan Scheme was launched on 6th April 2021, replacing the popular COVID support schemes such as CBILS and BBLS.
Eligibility for the new scheme is pretty encompassing, and it ensures that businesses of any size can continue to access loans of up to £10 million to support growth and recovery. The government guarantees 80% of the finance to the lender to ensure that they continue to have the confidence to lend to businesses.
Who is eligible?
You can apply for a loan if your business:
- is trading in the UK.
- would be viable were it not for the pandemic.
- has been adversely impacted by the pandemic.
- is not in collective insolvency proceedings (unless your business is in the scope of the Northern Ireland Protocol in which case different eligibility rules may apply).
- A business that received support under the earlier COVID-19 guaranteed loan schemes is still eligible to access finance under this scheme if they meet all other eligibility criteria.
Who cannot apply:
Businesses from any sector can apply, except:
- banks, building societies, insurers, and reinsurers (but not insurance brokers)
- public-sector bodies
- state-funded primary and secondary schools
What can you get?
- Term loan or overdrafts of between £25,001 and £10m per business
- Invoice or Asset finance of between £1,000 and £10m per business
- No PG will be taking on facilities up to £250,000
Unlike CBILS, which has a minimum turnover requirement of 200k, there is no minimum turnover requirement with RLS. No personal guarantee is required on loans of up to 250k with both schemes.
Find out more about the Recovery Loan Scheme here.
To apply, or find out if you qualify for the Recovery Loan Scheme get in touch with Funding Bay here, and one of our experts can set you up for a consultation.