Following the announcement last month that the Recovery Loan Scheme (RLS) would be extended until 30 June 2024, a new iteration of the scheme has now been launched, and there are some key changes to note.
Whilst the RLS continues to offer loans of up £2million and be 70% Government-backed, there have been some changes to the eligibility criteria and key features:
- There is no longer a requirement to demonstrate the impact of COVID-19, unlike the previous iteration of the scheme (except for charities and Further Education colleges who are still required to confirm the effect of the pandemic on their operations)
- The Annual Equivalent Rate (AER), including fees and interest, cannot be more than 14.99%
- Up to £2million per business group for borrowers outside the scope of the Northern Ireland Protocol is available, and up to £1million for businesses that fall within the Protocol
- Personal guarantees can be taken at the lender’s discretion, in line with their standard credit and fraud checks
- Businesses who have previously took out a CBILS, CLBILS, BBLS or RLS facility before 20 June 2022 are still eligible to access the new iteration of the RLS after 1 August 2022, but in some instances, may reduce the maximum amount you are able to borrow
For further information on the key features of the scheme, including eligibility criteria and participating lenders, click here. Applications are now being accepted.
Get in touch
If you are interested in applying for a loan under the RLS scheme to improve your long-term capital position, fill a short-term cash flow gap, invest in new assets or equipment, or something else, get in touch with Jill Morris by clicking the button below.