Recovery Loan Scheme announced for businesses
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. This scheme is designed to support UK businesses with a viable business proposition that are struggling following the pandemic with term loans of between £25,001 and £10 million (maximum £30m per group).
You can apply up to 31 December 2021, subject to review.
Flexible terms available
Spread repayments of your loan from three months to six years with fixed and variable interest rates.
Available to businesses that have already received support.
You can still apply for the Recovery Loan Scheme if you have taken out a Bounce Back Loan or Coronavirus Business Interruption Loan providing you meet the eligibility criteria and lending assessments. The amount you have borrowed under a previous scheme may in certain circumstances limit the amount you may borrow under the Recovery Loan Scheme.
Is your business eligible?
The Recovery Loan Scheme will support access to finance for UK businesses as they recover and grow following the pandemic.
The Recovery Loan Scheme is available to businesses affected by coronavirus (Covid-19) that.
- Are UK-based and operate in the UK?
- Require a loan to enable trade during short-to-medium term difficulty.
- Can afford to repay the loan for a term up to six years.
How to apply?
You can apply online but Before you apply, you should be aware that your application will be subject to credit and fraud checks, as well as lending assessments. Security may be required. Subject to status. Terms and conditions apply.
You are responsible for repaying 100% of the loan. The provision of the government guarantee does not in any way reduce your liability for the whole amount of the loan. And unlike previous government Covid-19 schemes, you will be responsible for interest payments and any associated fees from the outset.
By submitting a request to your lender for a review/ call back, you are confirming that you have read and understood the eligibility criteria for the Recovery Loan Scheme and understand that its features are different to previous schemes such as the Coronavirus Business Interruption Loan Scheme and Bounce Back Loan Scheme.
What a lender will need from you
- Basic information regarding your company/ Sole trader/Trust/Fund
- Total borrowing your business has outstanding with any lender.
- What percentage of your turnover is generated from normal trading activities?
- How many employees does your business currently have?
- Complete detail of individual who is applying (RLS)
- Please describe how COVID impacted your business.
- What was your business turnover for your accounting period ending in 2019?
- What was your business turnover for your accounting period ending in 2020?
- What was your forecast turnover for the next 12 months?
- What is the purpose of the loan?
- Have you obtained a Bounce Back Loan (BBL)?
- Last 3 years annual accounts (You must upload while applying the RLS)
- Current year management account (You must upload while applying the RLS)
- 2 Year forecast (You must upload while applying the RLS)
- Business plan (You must upload while applying the RLS)