The Government’s Recovery Loan Scheme (RLS) is now open for applications.

In this short article, we explain more about the scheme and outline how you can apply:

Background

Running between 6th April and 31st December 2021, the Recovery Loan Scheme (RLS) offers financial assistance UK-based businesses as they recover following the Covid-19 pandemic.

The British Business Bank states that:

  • 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.
  • 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
  • Loan types include:
    – Asset Finance
    – Overdrafts
    – Term Loans
    – Invoice Finance

Who is eligible?

Businesses must:

  • By operating in the UK
  • Be able to prove that the Covid-19 Pandemic has had an impact on said business
  • Have a long term proposition.

RLS is open to those who have taken advantage of previous covid19-related schemes, but the amount you borrow could be limited

If you are borrowing less than £250,000 there will be no need to provide a personal guarantee

There is no rule that stipulates you must be turning over a certain amount.

How to Apply?

  • Find a lender
    – The scheme is available through a select number of providers who have been appointed by the British Business Bank.
    – Full list is available here: Click here to view the list
  • Go direct to your chosen lender
    – The first point of call should be the lender’s website
    – NB: Not all lenders can offer every choice of finance and there can be difference on the amounts lenders are able to offer.
  • Prepare for the application.
    – Lenders will need to be confident about your ability to re-pay, so they may ask for details of previous accounts, information pertaining to assets, a business plan and/or management accounts
  • Your chosen lender will make a decision
    – Funds are given at the discretion of the lender

Full information is available via the British Business Bank. Striver is not a lender or a financial adviser so we encourage all interested parties to familiarise themselves with the regulations and terms before applying: Visit here for more info