Recovery Loan Scheme available to businesses affected by Covid-1904/06/2021
The Recovery Loan Scheme (RLS) was introduced on April 6th to replace the government’s previous coronavirus lending schemes. This initiative is available to any business that has been adversely affected by the Covid-19 pandemic and is available through a number of lenders accredited by the British Business Bank. As the UK continues to relax coronavirus restrictions and businesses strive to make up lost ground, the RLS offers one route back to health. The question is, is it right for your needs?
To be eligible for the scheme, you must be able to afford to take out additional debt finance. However, you can use the finance supplied under the RLS for any legitimate business purpose, and it is available to you even if you have borrowed from one of the other coronavirus loan schemes (the Bounce Back Loan Scheme, the Coronavirus Business Interruption Loan Scheme, and the Coronavirus Large Business Interruption Loan Scheme). The only way in which previous borrowing affects eligibility for the RLS is that, in certain cases, it may limit the size of loan available to your business.
The scheme gives lenders an 80% guarantee, allowing them to continue supporting British businesses with confidence. A loan supplied through the RLS can be between £25,000 and £10 million, and can be delivered through the following facilities: a term loan, an overdraft, invoice finance, or asset finance. You can learn more about the RLS at the British Business Bank’s website.
If you are considering applying for an RLS loan, contact JW Hinks on 0121 456 0190. Our experienced team of accountants and business advisers can help you to determine whether or not a loan is in your business’s best interests, and, if required, can help you access the RLS.