Recovery Loan Scheme (RLS)

At the Budget on 3rd March 2021, Chancellor Rishi Sunak announced the Recovery Loan Scheme (RLS), the Government’s latest debt finance programme. The RLS is now open for applications and the programme runs until 31st December 2021 subject to review.

RLS FEATURES

The three schemes (BBLS, CBILS, and CLBILS) closed on 31st March 2021 and will be replaced by the new Recovery Loan Scheme (RLS) which is now open for applications.

Up to £10 Million Facility Limit & Up to 6 year Finance Term

The maximum value of a facility provided under the scheme is £10 million per business. Minimum facility sizes do vary; they start at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts. Term loans and asset finance facilities are available for up to six years, with overdrafts and invoice finance available for up to three years.

No Personal Guarantees up to £250,000.00

No Personal Guarantees can be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.

No turnover restriction

There is no turnover restriction for businesses accessing the scheme.

In addition to BBL / CBILS

Businesses which have taken out a CBILS, CLBILS or BBLS facility can still access the new scheme, although the maximum they can borrow depends on the lender’s assessment and scheme requirements.

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ELIGIBILITY

To be eligible for the scheme your business must:

Location

Be UK-based in its business activity.

Turnover

There is no turnover limit on the RLS scheme.

Businesses from any sector can apply

Except for banks, building societies, insurers and reinsurers (but not insurance brokers) public-sector bodies, or state-funded primary and secondary schools.

Impact

You will need to demonstrate that your business is a viable operation or would be viable were it not for the pandemic and has been impacted by the coronavirus pandemic.

No minimum trading history

Unlike CBILS you do not need a minimum of two years trading history to apply.

Legitimate business purposes

RLS can be used for any legitimate business purpose, including managing cashflow, investment, and growth.

Government supported funding update

Over £81bn of loans delivered to 1.63m UK businesses

Bounce Back Loan

£46.53bn to 1,531,095 businesses from 2,056,587 applications

CBILS

£23.28bn to 98,344 businesses from 233,247 applications

CLBILS

£5.3bn to 716 businesses from 1,130 applications