The Recovery Loan Scheme now open for applications

The Recovery Loan Scheme now open for applications

Launching today, Tuesday 6 April 2021, the Recovery Loan Scheme (RLS) provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.

You can apply to the scheme if COVID-19 has affected your business. You can use the finance for any legitimate business purpose – including managing cashflow, investment and growth. However, you must be able to afford to take out additional debt finance for these purposes.

If your business has already borrowed from any of the other coronavirus loan schemes – namely:

– the Bounce Back Loan Scheme (BBLS)
– the Coronavirus Business Interruption Loan Scheme (CBILS)
– the Coronavirus Large Business Interruption Loan Scheme (CLBILS)

RLS is still open to you. However, the amount you’re allowed to borrow will depend on:

– the lender’s assessment of your business
– the scheme requirements

The RLS will run until 31 December 2021, though this may be reviewed.

How much is available?

The maximum amount of a facility provided under the scheme is £10m per business (maximum £30m per group). Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.

The annual effective rate of interest, upfront fee and other fees cannot be more than 14.99%.

Term length

For term loans and asset finance facilities: from three months up to six years.

For overdrafts and invoice finance facilities: from three months up to three years.

Click here to find out more and to apply.

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