On the 20 July 2022 the UK Government announced that the Recovery Loan Scheme (RLS) will stick around for an extra two years. Helping small businesses just like yours juggle their post-pandemic ramp up with new pressures like increased costs and rising inflation.
The RLS extension means ongoing access to between £1,000 and £2 million in affordable funding through term loans, overdrafts, asset finance and invoice finance
A straightforward cash injection you pay back over time. You might use a loan for R&D, moving to a new premises, or refinancing an existing loan
Speed up your business cashflow by getting an advance on money owed to you in invoices, without waiting for debtors to pay you
A loan designed for purchasing assets for your business. You might upgrade your equipment, tech, or invest in machinery
Lets you spend beyond your business account balance. Sometimes referred to as a Revolving Credit Facility
So far, the UK government hasn’t released much information about changes to RLS, which starts accepting applications soon. One key change that has been mentioned, is that lenders may now ask for a personal guarantee, regardless of the amount of funding applied for.
The other fact we're sure of it the maximum amount of funding available through RLS hasn’t changed. Businesses will still be able to borrow up to £2 million through the extended scheme.
Applications for the extended Recovery Loan Scheme haven’t opened just yet but we’ll update you as soon as we know more.
Once applications are open, simply log into your Capitalise for Business account to start your application.
If you don't have an account, create one free. You’ll unlock insights about your business credit score, how much you might be able to borrow once RLS applications open and more.
The borrower will always be responsible for repaying the loan. The government will only repay the loan if the business cannot - up to 70%. The repayments for RLS start from month one.
The decision to lend is at the lenders discretion. At Capitalise.com, our view is that lenders will only lend to businesses that have recently shown affordability to support the loan.
Once lenders have been approved by The British Business Bank you'll be able to apply for RLS funding directly from within the Capitalise platform.
Please be aware that some lenders may request additional information but this list is the minimum we need to be able to determine which lenders are
• Loan amount, purpose, and term
• A short paragraph on the business background and how it has been impacted by Covid-19
• Last 2 full sets of filed accounts
• Last 12 months bank statements (PDF format & no older than 7 days)
• Shareholder & directors details - name, DOB and home address
• Up to date management accounts
• Current debt position of existing loans, facilities etc
Term loans, overdrafts, asset finance, and invoice finance.
Term loans and asset finance facilities are available for up to six years, with overdrafts and invoice finance available for up to three years.
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.
Yes, subject to meeting the scheme eligibility requirements and provided they do not borrow more than what the business is entitled to.
Eligibility is very similar to CBILS.
Provided other criteria are met, RLS is open to:
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.