Following on from the end of the first version of the Recovery Loan scheme on 31st June 2022, the new scheme has just been announced started 1st August 2022.
The Recovery Loan scheme is the replacement of both the Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS) which ended in 2021.
Full details have now been announced by the British Business Bank. The main headline is that banks and approved lenders will get a 70% 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.
Fill in our Recovery Loan Scheme Application Form or call 0161 5469128 to apply now.
Key Features of The Recovery Loan Scheme
Businesses taking loans under the Recovery Loan Scheme (RLS) will still be fully 100% liable for any debt that they take.
The first version of RLS did not allow personal guarantees on loans under £250,000, from 1st August 2022 lenders will now be allowed to request a PG if they want.
Its worth noting that there is no fees or interest covered by the government, like there was with the Bounce Back Loans and CBILS schemes.
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 70%
- Maximum £2m Per Business Group
- 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
- 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
- Businesses who have taken out a CBILS or Bounce Back Loan can still access the scheme (lender criteria and underwriting permitting)
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 are an independent recovery loan scheme broker and work with a wide range of approved banks/lenders under the scheme.
Please fill in the form below to apply or call 0161 5469128