The very popular Coronavirus Business Interruption Loan Scheme (CBILS) came to its deadline on the 31st March 2021, and in its place, the new Recovery Loan Scheme (RLS) was launched, coming into effect on 6th April 2021.
The RLS is currently set to run until December 31st, and you can apply if your business have been impacted by the pandemic. RLS is specifically intended to enable business owners who want to support plans of growth. You can use the RLS to facilitate new equipment, new staff members, or to manage your cash flow.
Whilst the two scheme have similar intentions and names, the schemes do differ.
Side by side:
– Loan amount: CBILS (50k- 5mill), RLS (25k-10mill)
– Loan term: CBILS (2-6 years), RLS (2-6 years)
– Minimum annual turnover: CBILS (0ver 200k), RLS (no min)
– No personal guarantee is required on loans up to 250k with both schemes.
However, with CBILS, the government payed the first 12 months and the upfront fee on your behalf. This is however not the case with the RLS. The benefits of RLS is that you can borrow a large amount. You can borrow up to £10 million, and there is no minimum turnover required, unlike CBILS which had a minimum of 200k.
CBILS offered an extremely unique opportunity to borrow, and a loan facility that advantageous, will, in all likely, not be seen again for a while. RLS does differ from CBILS, but still offers a good opportunity to get back on your feet in a COVID recovery.
Find out more about the Recovery Loan Scheme here.
