Recovery Loan Scheme
Nicholls & Roe Are Commercial Finance Specialists
A solution for small businesses, such as Start-Ups or limited companies that may be seeking additional funding Launched on 6 April 2021, the Recovery Loan Scheme (RLS) provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.
You can apply to the scheme if Covid-19 has affected your business. You can use 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:
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.
How it works
The Recovery Loan Scheme will initially be available through a number of lenders accredited lenders.
Please note: A key aim of the Recovery Loan Scheme is to improve the terms on offer to you, but if a lender can offer you the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.
When looking to borrow, you should first approach your own finance provider – ideally via its website. You may also consider approaching other lenders if you’re unable to access the finance you need.
Types of finance
A lender can provide up to £10 million as one of the following facilities:
RLS gives the lender a government-backed guarantee against the outstanding balance of the facility. As the borrower, you are always 100% liable for the debt.
If you’re borrowing £250,000 or less the lender won’t take any form of personal guarantee.
If you’re borrowing more than £250,000 the lender has the discretion to decide whether to take personal guarantees. However: