New Recovery Loan Scheme 2021 UK

Last updated on December 13th, 2021 at 11:07 pm

Updated: 13th December 2021

With the budget announcement in early March, a new Recovery Loan Scheme was launching in the UK on 6th April 2021. With this also confirms the end of the Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS) on the 31st March 2021.

Full details have now been announced by the British Business Bank. The main headline is that banks and approved lenders will get a 80% government backed guarantee on any loans made under the scheme. This is to help the continued availability of funding for SME’s as the UK recovers from the Covid Pandemic.

To Apply For a RLS Loan Please Call 0161 5469128

Recovery Loan Scheme Application Form

Key Features of The Recovery Loan Scheme

Businesses taking loans under the RLS scheme will still be fully 100% liable for any debt that they take. Personal guarantees can only be requested on loans above £250,000, as set by the scheme.

Its worth noting that there is no fees or interest covered by the government, like there was in the BBLS and CBILS.

So this means that finance under the scheme will be much closer to normal “business as usual” lending, similar to pre-covid. The main benefit to businesses would appear to be greater access to funding from banks and lenders, due to the partial guarantee the government is providing.

Here are the key points of the recovery loan scheme that have so far been announced.

  • Government Backed Guarantee To Scheme Lenders For 80%
  • Maximum £10m of Facilities Under The Scheme Per Business
  • All interest and fees will be paid as normal by the business
  • Minimum facility size of £1,000 for Asset Finance and Invoice Finance
  • Minimum facility size of £25,001 for Business Loans and Overdrafts
Source: www.british-business-bank.co.uk
  • Up to 6 Years maximum term length for loans and asset finance
  • Up to 3 years maximum term length for overdrafts and invoice finance
  • Flexibility for lenders when assessing short-to-medium term financial performance caused by Covid
Source: www.british-business-bank.co.uk
  • Businesses who have taken out a CBILS or Bounce Back Loan can still access the scheme (lender criteria and underwriting permitting)
Source: www.british-business-bank.co.uk

We have covered in more detail the range of government backed business loans that are available to UK businesses.

Apply For The Recovery Loan Scheme – RLS

We have a wide range of banks and lenders offering loans under the Recovery Loan Scheme. Please fill in the form below to apply.

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