The UK Government’s £75bn Recovery Loan Scheme (RLS), launched earlier this week, to provide financial support to businesses affected by the pandemic. The scheme, which will be open until 31 December 2021, can be accessed to fund working capital, investment and growth. There is no turnover restriction for businesses accessing the scheme.
Under RLS the outstanding balance of the facility will be government guaranteed and the scheme will be available from a list of 18 banks initially, with others being added to the list as they become accredited. The full list can be found on the British Business Bank website.
Applications will be welcomed from businesses who have already received funds under previous Covid-19 loan schemes, including the Bounce Back Loan Scheme and the Coronavirus Business Interruption Loan Scheme (CBILS).
Borrowers can access up to £10m, for a period of 3 months to 6 years, and will be in the form of asset finance, term debt, invoice finance or overdraft. Like the previous schemes, no personal guarantees will be taken for lending of £250k or less.
As with previous Covid-19 lending support, the business must have been impacted by the pandemic; be carrying out a trading activity in the UK; and must not operate in certain sectors (including banking, insurance, state funded education or be a public sector body).
If you have any questions or would like more information, please do not hesitate to contact Chris Thompson, Corporate Finance Senior Manager