Recovery Loan Scheme
Apply for a property-secured Recovery Loan from £250k to £2m
What is the Recovery Loan Scheme?
The Recovery Loan Scheme (RLS) launched on and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.
RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes. Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.
A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.
At Autumn Budget 2021, the government announced that the Recovery Loan Scheme will be extended by six months to , with changes applying to all offers made from the .
From 1 January 2022, the following changes have come into force:
- The scheme is open to small and medium sized enterprises (turnover <£45m)
- The maximum amount of finance available under the scheme is £2 million per business (maximum amount per Group limited to £6m)
- The guarantee coverage that the government provides to lenders is 70%
Assetz Capital Lending Limited specialise in providing real world lending to UK SMEs and we’re delighted to have been approved for accreditation by British Business Bank as a lender under the Recovery Loan Scheme.
For a limited time only, we’re providing property-secured loans through this government-backed scheme. So, if your client is a UK-based business and has been adversely affected by Coronavirus, they could be eligible for a property-secured RLS loan between £1m - £2m.
- Up to 87.5% Loan To Cost
- Up to 72.5% LTGDV
- Terms up to 3 years
- Preferred RLS loan size: £1m - £2m
- Rates from 6.1%
Key features of the Recovery Loan Scheme under Assetz Capital
- Up to £2m RLS facility per business
- Term length up to 2 years
- Interest and fees to be paid by the borrower from the outset
- Personal Guarantees
- Guarantee to the Lender
Are you eligible for a Recovery Loan?
You can apply for a Recovery Loan if you meet all the following criteria:
- Covid-19 impact: The borrower must confirm to the lender that it has been impacted by Covid-19.
- UK-based: The borrower must be carrying out trading activity in the UK.
- Viability test: The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19.
- Credit and fraud checks for all applicants: Lenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lenders.
- Turnover limit: Businesses with a turnover not exceeding £45m per annum.
Please note: The following are not eligible under RLS:
- Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers).
- Public sector bodies.
- State-funded primary and secondary schools.
You will need to provide certain documents when you apply for an RLS-backed facility. These are likely to include:
- Management accounts.
- A business plan.
- Historic accounts.
- Details of assets.
Decision-making on whether a business is eligible for RLS is fully delegated to the British Business Bank's accredited RLS lenders.
Business Finance Support
The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.
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: https://www.british-business-bank.co.uk/recovery-loan-scheme