The new government-backed Recovery Loan Scheme (RLS) was launched this week (6th April 2021) and runs until 31st December 2021.
Administered by the British Business Bank, the scheme provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.
Businesses who can demonstrate that they have been directly affected by Covid-19 are eligible to apply. 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.
The Recovery Loan Scheme can be used as an additional loan on top of support received from the emergency schemes, such as:
- the Bounce Back Loan Scheme (BBLS)
- the Coronavirus Business Interruption Loan Scheme (CBILS)
- the Coronavirus Large Business Interruption Loan Scheme (CLBILS)
Businesses can access loans varying in size from £25,000, up to a maximum of £10 million and the government will provide an 80% guarantee for all loans. Interest rates have been capped at 14.99% and are expected to be much lower than that in the vast majority of cases,
Read guidance on the recovery loan scheme and find out how to apply here.