Did you know the Recovery Loan Scheme (RLS) is due to come to an end on 30 June 2024?
There’s still time to apply for the government backed scheme which could provide your business with accessible funding as you look to invest and grow.
What is the RLS?
The RLS was launched in 2021 to help small businesses recover from the COVD pandemic through access to finance as they look to invest and grow, with a new iteration launched in August 2022.
Businesses are able to use finance for any legitimate business purpose, including managing cashflow, investment and growth. However, businesses must be able to afford to take out additional debt finance for these purposes.
The British Business Bank administers the scheme on behalf of the Secretary of State for Business and Trade.
Key features of the Recovery Loan Scheme
- Up to £2million per business group – the maximum amount available under the scheme is £2million, with minimum facilities varying from £1000 asset and invoice finance, and £25,001 for term loans and overdrafts
- Wide range of products – RLS offers term loans, overdrafts, asset finance and invoice finance facilities, however, not all lenders are able to offer all products.
- Term length – term loans and asset finance facilities are available from three months up to six years, with overdrafts and invoice finance available from three months up to three years
- Pricing -Interest rates and fees charged by lenders will vary and will depend on the specific lending proposal, however, the lender’s pricing will take into account the benefit of the government guarantee
What is the eligibility criteria?
- Turnover limit – the scheme is open to businesses with a turnover up to £45m
- UK-based – the borrower must be trading in the UK, and for most businesses, generating more than 50% of its income from trading activity
- Viability test – the borrower must illustrate a viable business proposition
- Business in difficulty – the borrower must not be a business in difficulty, or involved in relevant insolvency proceedings
- Subsidy limits – borrowers must provide written confirmation that receipt of the RLS facility will not mean that the business exceed the maximum amount of subsidy they are allowed to receive.
Get in touch
If you are interested in applying for funding under the RLS, get in touch by emailing enquiries@pmm.co.uk as soon as possible to ensure you don’t miss the deadline.
