Recovery loan scheme (RLS)
Were your clients impacted by the pandemic? Would your clients benefit from Recovery loan scheme (RLS) as part of a restructure of the funding already in place?
The deadline was extended to the 30 June as part of the Chancellors speech so opportunity to consider this for clients.
With an estimated 1.5 million SMEs having a BBL, many will need further financing as the economy opens and working capital is squeezed. The RLS is designed to bridge the gap.
What term loans are available?
Term loans and asset finance facilities are available for up to six years, with overdrafts and invoice finance available for up to three years.
What type of businesses are eligible?
Eligibility is very similar to CBILS. Provided other criteria are met, RLS is open to:
- sole traders;
- corporations;
- limited partnerships;
- limited liability partnerships;
- co-operatives and community benefit societies; and
- any other legal entity carrying out business activity in the UK with business activity operating through a business account
Can a business have a Recovery Loan if they’ve already had an CBILS, BBLS or CLBILS?
Yes, a Recovery Loan can sit alongside existing government-supported facilities without the need to refinance – if below the maximum facility limit. Anything borrowed under CBILS or CLBILS will count towards a business’ maximum amount.
The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit http://www.british-business-bank.co.uk/recovery-loan-scheme for more information.
If you need further guidance please speak to your office Capitalise point of contact (Leon Joseph, Stuart Sheldrick, Julie Enoch, Chloe Freeburn, Darren Flint, Lucas Crater, Abbie Favaro).