Recovery Loan Scheme
The Recovery Loan Scheme has now launched. It is the latest of the Government-backed loan schemes and went live on the 6th April 21. It replaces the Bounce Back Loan Scheme and also the CBILS and CLBILS schemes which all closed to applications on 31st March.
What is the Recovery Loan Scheme (RLS)?
The RLS is designed to make it easier for businesses to borrow money to recover from the coronavirus pandemic. It is supported by the Government and administered via the British Business Bank. To apply for a loan under the scheme, you need to apply to one of the accredited lenders offering the loans.
How Much Can I Borrow?
To qualify, you need to be a UK registered trading company. The business needs to be viable and been impacted by the pandemic. The amount you can borrow depends on the product type but can range from £1K to £10M. Applicants will need to undergo a lender’s credit assessment and fraud checks and supply supporting financial information.
What are the Key Features of the RLS?
The key features of the scheme are as follows:-
- The loan come in various forms. Those being Term Loans, Overdrafts, Asset Finance and Invoice Finance
- You can borrow up to 3 years for Overdraft and Invoice Finance and up to 6 years for Term Loans & Asset Finance
- The business will be required to pay interest and any lenders fees from day 1. There is no interest-free period
- Loans are not directly linked to business turnover. Affordability will be assessed by each lender
- The Government will provide a guarantee to the lender of up to 80% of the outstanding balance of the loan.
- You do not need to repay your Bounce Back Loan, CBILS Loan or CLBILS Loan
If you would like to find out more information about the Recovery Loan Scheme, please follow this link:- https://www.lochendfinance.co.uk/recovery-loan-scheme. Alternatively, email info@lochendfiannce.co.uk or call 07485 174395
