The Recovery Loan Scheme (RLS)

What is the Recovery Loan Scheme?

The Recovery Loan Scheme (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.

The Scheme will run until 31 December 2021, subject to review.

We only provide Hire Purchase, Finance Lease and Sale and Hire Purchase/Lease-back facilities. We do not offer Term Loans.

Eligibility

Scheme Features

Scheme features include:

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.

Our maximum facility under the scheme is £100,000.

Term loans and asset finance facilities are available from three months, for up to six years, with overdrafts and invoice finance available from three months, for up to three years.

We only offer 3 or 4 year term facilities.

Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.

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 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.

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.

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.

How to apply

You will need to provide us with certain documents, including the below and we are responsible for deciding whether to provide an RLS facility:

You can apply via a commercial finance broker or directly by contacting us on 0161 371 1160 or using our online form.

Contact Us

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.

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 & 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 http://www.british-business-bank.co.uk/recovery-loan-scheme