Recovery Loan Scheme (RLS)
CBILS and BBL aren't open for applications – RLS replaces both of these facilities.
The scheme covers term loans, invoice finance, asset finance and overdrafts. Businesses can borrow up to lb10 million, but there's no interest or fee-free period.
The government guarantees 80% of the debt and there's no turnover or trading history requirements. Personal guarantees aren't required for loans under lb250k.
The scheme is open until 31 December 2021, subject to review.
Who can use?
You can use for a financial loan in case your business:
- is exchanging the UK
You have to show that your business:
- would be viable were it not for the pandemic
- has been adversely impacted by the pandemic
- is not in collective insolvency proceedings (unless your company is in scope of the Northern Ireland Protocol in which case different eligibility rules may apply)
Business that received support under the earlier COVID-19 guaranteed loan schemes are still eligible to access finance under built when they meet other eligibility criteria.
What support is provided?
- term loans or overdrafts which is between lb25,001 and lb10 million per business
- invoice or asset finance which is between lb1,000 and lb10 million per business
No personal guarantees will be adopted facilities up to lb250,000, and a borrower's principal private residence cannot be taken as security.
How long is the loan for?
The maximum entire facility depends on the type of finance are applying for and will also be:
- up to 3 years for overdrafts and invoice finance facilities
- up to six years for loans and asset finance facilities
Application
You apply for the borrowed funds directly via a lender
