Understanding the Recovery Loan Scheme

 

The Recovery Loan Scheme (RLS) provides financial support to businesses across the UK as they recover and grow following the Coronavirus pandemic. RLS gives the lender a government-backed guarantee against the outstanding balance of the facility.

 

  • Loans up to £10m for individual businesses, and up to £30m across a group

  • Loan term up to 6 years

  • 80% Government guarantee

 

Businesses that have already received support under existing COVID-19 loan schemes will still be eligible to access finance under the RLS, but only if they meet all other eligibility criteria. The outstanding balance of any CBILS or CLBILS will need to be taken into consideration when determining the amount of RLS finance. In essence, the RLS is designed to improve the terms on offer to borrowers, but if a lender is in a position to offer the option of a loan on better terms than an RLS loan, they will do so.

 

The RLS is now open for applications and the programme runs until 31st December 2021, subject to review.

 

If you are interested in finding out more about the Recovery Loan Scheme, please contact Philip Kay on +44 (0) 20 3205 2191 or email: philip@arcandco.com