With the government having made its keenly awaited announcement about the lifting of restrictions from 19 July, you may feel that now is the time to review the finance requirements for your business.
The Recovery Loan Scheme (RLS) provides financial support to businesses across the UK as they recover and grow following the coronavirus pandemic.
Frequently Asked Questions
Who can apply?
You can apply for a loan if your business is trading in the UK and you can show that your business:
- Would be viable if it were not for the pandemic
- Has been adversely impacted by the pandemic
- Is not in collective insolvency proceedings (unless your business is in scope of the Northern Ireland Protocol in which case different eligibility rules may apply)
- Businesses that received support under the earlier COVID 19 guaranteed loans schemes are still eligible to apply under this scheme provided they meet all other eligibility criteria.
What can I use the loan for?
You can use the finance for any legitimate purpose – including managing cash flow, investment and growth.
What are the terms?
- Term loans or overdrafts of between £25,001 and £10 million per business
- Invoice or asset finance of between £1,000 and £10 million per business
- If you’re borrowing £250,000 or less the lender won’t take any form of personal guarantee
How long is the loan for?
The maximum length of the facility depends on the type of finance you apply for and will be:
- Up to 3 years for overdrafts and invoice finance facilities
- Up to 6 years for loans and asset finance facilities
How long have I got to apply?
Subject to review, the scheme is open until 31 December 2021.
If you are interested in applying for a loan under the Recovery Loan Scheme (RLS) our sister company Dee Commercial Finance Limited may be able to help.