Recovery Loan Scheme Extended. How Do I Get a Loan
The Recovery Loan Scheme (RLS) was put in place by the Government in 2021, to support UK businesses with access to finance as they try to grow out of the pandemic and recover from disruption caused by COVID. It has due to finish in June 2022 but it has been announced that it will be extended for a further 2 years from August.
Company Funding Options has access to many funders who are keen to lend to growing businesses. Please contact us on 020 7760 7524 and we can discuss how to get funding for YOUR company.
Even if you have had CBILS or bounceback loans you can probably borrow more or use a RLS loan to repay the existing loans and take out extra borrowing for your company. This scheme is open until 30th June 2022
What is the offering?
Businesses can access loans and other types of finance up to £2 million per business, following the closure of existing loan schemes:
- Term loans (for up to six years) and overdrafts (for up to three years) available between £25,001 and £2 million per business
- Invoice finance (for up to three years) and asset finance (for up to six years) available between £1,000 and £2 million per business
All lenders are accredited by the British Business Bank and any new lenders under the scheme will fall under this list as and when they become accredited.
Note: those involved will now need to give personal guarantees or secure the lending on the borrowers home. RLS gives the lender a government-backed guarantee against the outstanding balance of the facility. As the borrower, your company is always fully liable to repay the debts as per the agreement.
The finance provided is to be used for any legitimate business purpose only; working capital requirements, growth and investment are all included.
70% of the finance issued to the lender is guaranteed by the Government, to ensure the lender has the confidence to continue to lend to businesses. But this is not an easy financial product to obtain unlike bounce back loans and CBILs loans in 2020-21. That’s why it is best to use the services of a regulated finance brokerage like us!
Company Funding Options is authorised and regulated by the Financial Conduct Authority; number 773468
Is there an interest rate?
Yes. Interest is expected to be capped at 15%. Most loans are priced at 5-12% so far.
Who is eligible?
The RLS is open for businesses of any size though there are some criteria to match:
- The business must be trading within the UK
- You must show that your business is viable or would be viable, if it was not for the pandemic
- There must be proof that your business has been impacted by the coronavirus pandemic
- Your business must not be in any insolvency proceedings
- Open for all businesses excluding state-funded primary and secondary schools, public-sector bodies, banks, building societies, insures and re-insurers
For more information on the RLS, get in touch with Company Funding Options NOW!
Tel: 020 7760 7524