About the Scheme
The Recovery Loan Scheme (RLS) was launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.
RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including: managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes.
Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.
A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.
The Scheme will run until 31 December 2021, subject to review.
- RLS amounts available from First Enteprise – Enterprise Loans: Minimum RLS loan facility of £25,001 up to a maximum facility of £250,000
- Term length: Term loans are available from twelve months up to five years
- Interest and fees to be paid by the borrower from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.
- Access to multiple Covid-19 schemes: Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS
- Personal Guarantees are not required for RLS facilities
- Guarantee to the Lender: The scheme provides us the lender – Enterprise Loans East Midlands – with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.