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The Government’s Recovery Loan Scheme (RSL) launched on Tuesday, 6th April and is aimed at any businesses who have suffered during the Coronavirus pandemic.

RSL provides financial support of up to £10 million per business and the funds can be used for any legitimate business purpose, whether that be managing cash flow, investment or growth.

You will be eligible even if you have sought financial support from other schemes; however this may limit the amount you are able to borrow under RSL.

How does the Recovery Loan Scheme work?

A number of lenders are taking part in the RSL and you should ideally approach a lender directly via its website.

A lender can provide up to £10 million as one of the following facilities:

  • Term loan
  • Overdraft
  • Invoice finance
  • Asset finance

While you are 100% liable for the loan repayment, the Government is providing backing to lenders to cover any outstanding balances.

If you are borrowing less than £250,000 you will not be able to use any form of personal guarantee; however borrowing above £250,000 gives the lender discretion as to whether to allow personal backing.

How do I apply for the Recovery Loan Scheme?

You should approach a lender directly, though be aware that not every lender may offer every type of finance available under the RLS.

The lender makes the decision whether or not to approve your loan application. If you are refused you are welcome to approach another lender.

To be eligible, your business must:

  • have been impacted by Covid-19; you will need to confirm to the lender that you have been impacted by the pandemic
  • be carrying out trading activity in the UK
  • have a viable business proposition – your lender may disregard (at its discretion) any concerns over short to medium-term business performance due to the uncertainty and impact of Covid-19

Credit checks will be carried out by the lender. There is no turnover restriction for businesses applying for the scheme.

What do I need to apply for the Recovery Loan Scheme?

In order to apply for finance from RLS, you’ll need to provide certain evidence to prove you can afford to repay the loan. This may include the following:

  • Management accounts
  • Business plan
  • Historic accounts
  • Details of assets

The decision as to whether a business is eligible for the RLS lies fully with the British Business Bank’s accredited RLS lenders.

To see a full list of lenders please visit the British Business Bank’s list of approved lenders.

Head to our dedicated Coronavirus support page for more information.

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