The Recovery Loan Scheme is available until June 2024, providing small businesses with accessible funding. Ease short term pressure to your business and fuel long term growth, make sure to apply before the scheme ends.
On the 20th 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 Recovery Loan Scheme extension means ongoing access to between £1,000 and £2 million in affordable funding through term loans, overdrafts, asset finance and invoice finance until June 2024.
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
There aren’t many changes to the Recovery Loan Scheme since 2022. The key updates you need to know are that lenders will now ask for a personal guarantee, regardless of the amount of funding applied for.
The maximum amount of funding available through the Recovery Loan Scheme hasn’t changed. Businesses will still be able to borrow up to £2 million.
Applications for the Recovery Loan Scheme are open until June 2024.
To apply, simply sign up or login to your Capitalise for Business account. From here you can see how much you could be eligible to borrow and start your funding application.
Alongside dedicated support from a funding specialist, you will be able to apply up to 4 lenders in just one application
The Recovery Loan Scheme is backed by the UK government. This means that the government will guarantee 70% of the loan for the lender. This does not mean the borrowing business is not liable. In fact the borrower will always be responsible for repaying the loan in full. If for a legitimate reason the business cannot repay, the government will repay the lender up to 70%.
Repayments for the Recovery Loan Scheme will start from month one of the loan. Your monthly repayments will be clearly laid out in the terms of the loan offer, if you receive one. The repayments for RLS start from month one.
The decision to lend is at the lender's discretion. Lenders will likely only choose to lend if there is a clear affordability shown 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
most appropriate:
• 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
You could use a Recovery Loan for the following business loan products:
With a Recovery Loan, term loans and asset finance facilities are available for up to six years. Business overdrafts and invoice finance are available on term lengths 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.
