Recovery Loan Scheme (RLS)
Posted on 10th March 2022 at 09:14
Recovery Loan Scheme (RLS) - Closing 30th June 2022
The Government Backed Recovery Loan Scheme (RLS) couldn't have arrived at a better time, and with the announcement of an extension until the 30th June 2022, we still have time to get businesses back on their feet and on the road to recovery. The Recovery Loan Scheme supports access to finance for UK businesses as they navigate and recover from the disruption of the COVID-19 pandemic.
What you need to know about the Recovery Loan Scheme (RLS)
If you have taken out finance from any of the other Covid-19 loan schemes to assist your business through these tough times, RLS is still open to you incl:-
• The Bounce Back Loan Scheme (BBLS)
• The Coronavirus Business Interruption Loan Scheme (CBILS)
• The Coronavirus Large Business Interruption Loan Scheme (CLBILS)
One thing for you to consider, is that the amount you have borrowed under an existing scheme may limit the amount you borrow under RLS. With the announcement of the extension until the 30th June 2022, a few amendments have been made incl:-
• Term loans or overdrafts from £25,001 per business
• Invoice or asset finance from £1,000 per business
• No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security
• The maximum length of the facility depends on the type of finance you apply for and will be:
o Up to 3 years for overdrafts and invoice finance facilities
o Up to 6 years for loans and asset finance facilities
• The scheme will only be open to small and medium sized enterprises
• The maximum amount of finance available will be £2 million per business
• The guarantee coverage that the government will provide to lenders will be reduced to 70%
What documentation is needed to qualify?
Last 6 months banks statements.
Last set of completed filed accounts.
Management accounts / P&L and balance sheet (if available).
Our Application form filled by company directors (name, DoB, address).
Lenders will be required to undertake standard credit and fraud checks.
We are excited to be offering a free review of your businesses financial situation. If you would like to find out more and whether you qualify please give us a call on 020 3325 8000 or email Gillian Palmer at firstname.lastname@example.org - We are more than happy to have a chat and answer any questions you may have.
Tagged as: cash flow management, Cashflow, Finance, Funding for Growth, Lending Made Simple, Making Lending Simple, recovery loan scheme, SMEs
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