Businesses affected by the pandemic will need to ensure their Recovery Loan Scheme (RLS) applications are submitted and lender approved by 30 June 2022.
What is the Recovery Loan Scheme (RLS)?
Launched on 6 April 2021, the RLS supports access to finance for UK businesses as they recover and grow following the pandemic. The RLS followed the Coronavirus Business Interruption Loan Scheme (CBILS) and is most likely the last of its kind. Therefore, if your business is in need of a cash-flow boost, or you’re looking for ways to grow your business, now’s the time to apply.
Put simply, if you’re a SME business and have been impacted by the pandemic, you qualify. You’ll need to apply for the loan, demonstrating your viability, and have lender approval by 30 June 2022.
If you have a Bounce Back Loan (BBL) or are already using the CBILS you can still qualify for the RLS, although the amount you can borrow may be limited in this scenario.
Basics of the RLS
- The maximum amount of finance available is up to £2m per business can be utilised for a variety of purposes for your business, such as growth, investment, or working capital
- The guarantee coverage the government provides is 70% of the amount borrowed
- There are no personal guarantees required for a recovery loan up to £250,000, and the borrower’s home cannot be taken as security
- Repayment terms are up to three years for overdrafts and six years for loans
We can help
Don’t miss the June deadline and an opportunity to give your business a boost. Our Tax team are on-hand to help ease the pressure with loan applications. Find out more on 01788 539 000 or 0116 261 0061, or email [email protected].