Recovery Loan Scheme opens to businesses

On 6 April, the Recovery Loan Scheme (RLS) was introduced to replace the government’s coronavirus lending schemes.
The new scheme will support borrowing of up to £10m for individual businesses and up to £30m across a group, and, once received, the funds can be used for any legitimate business purpose, including managing cash flow, growth, and investment. It is designed to appeal to businesses that can afford to take out additional finance for these purposes.
The British Business Bank, which will administer the scheme on behalf of the Government, played an important role during the pandemic, by administering the Bounce Back Loan Scheme (BBLS), Coronavirus Large Business Interruption Loan Scheme (CBILS). The new Recovery Loan Scheme will continue to support smaller businesses as they steer a path towards a sustainable recovery.
The Recovery Loan Scheme (RLS) provides financial support to businesses affected by the Covid-19 pandemic. The scheme gives lenders a guarantee of 80% on eligible loans between £25,000 and £10, million to give them confidence in continuing to provide finance to UK businesses.
The RLS is open to all businesses, including those who have already received support under the previous Covid-19 guaranteed loan schemes, the Bounce Back Loan Scheme, the Coronavirus Business Interruption Scheme although the amount they have borrowed under an existing scheme may in certain circumstances limit the amount they may borrow under RLS.
The RLS is initially available through a number of lenders accredited by the British Business Bank.
You can apply to the scheme if Covid-19 has affected your business. You can use the finance for any legitimate business purpose – including managing cash flow, investment, and growth. However, you must be able to afford to take out additional debt finance for these purposes.
If your business has already borrowed from any of the other coronavirus loan schemes – namely:
• The Bounce Back Loan Scheme (BBLS)
• The Coronavirus Business Interruption Loan Scheme (CLBILS)
• The Coronavirus Large Business Interruption Loan Scheme (CLBILS)
RLS is still open to you, although the amount you have borrowed under an existing scheme may in certain circumstances limit the amount you may borrow under RLS
RLS will run until 31 December 2021, subject to Review.
The Recovery Loan Scheme will initially be available through a number of lenders accredited by the British Businesses bank. New lenders under the scheme will be listed on the British business bank website as they become accredited.