The Recovery Loan Scheme was originally launched by the government on 6th April 2021 to help support businesses financially during the Covid-19 pandemic. The main aim of the scheme is to improve terms on offer to businesses so they can recover.
The scheme was then extended to 30 June 2022 as announced by the government to continue to help businesses recover and grow after the Covid-19 pandemic. However, there was changes from the scheme from 1 January 2022. The eligibility criteria includes:
- the borrower must highlight that the business has been impacted by Covid-19
- the borrower must be UK-based with trading activity in the UK
- the scheme is only accessible for businesses with a turnover under £45m per annum
- the maximum amount of finance available will be £2m per business or £6m per group
Please bear in mind that this loan will need to be paid back in its entirety.
It should be noted that businesses that have taken out a CBILS, CLBILS, or BBLS schemes are still eligible to apply and gain access to the RLS, but the amount borrowed under an existing scheme may limit the amount borrowed under RLS, depending on certain circumstances.
The deadline for completed applications to the Recovery Loan Scheme is 30th June 2022. After this date, applications will not be accepted.
As a reminder, both your completed and signed applications, as well as official offers from the bank you have applied through, must be received by this date to be eligible for consideration for lending. However, banks cannot promise that the loan will be examined and granted to you in time since applications require time to process.
The government has not yet announced any other scheme once the RLS finishes, which may leave many businesses feeling lost. If your business need advice and support for finding the right funding for you if you’re still struggling to recover financially, please contact us at hello@bkplus.co.uk
