A new government-backed loan scheme to provide additional finance to businesses affected by the Covid-19 pandemic was launched on 6 April 2021 and runs until 31 December 2021.
The scheme aims to provide further support to protect businesses and jobs as lockdown is lifted, businesses reopen and the economy begins its recovery.
The Recovery Loan Scheme (RLS) is available to businesses affected by Covid-19 that
- Operate in the UK and are UK based
- Require funding to enable trade during short-to-medium term difficulty
- Can afford to repay the loan (terms up to six years are available)
Finance can be provided as one of the following facilitates:
- Invoice finance
- Asset finance
The finance available starts at £1,000 for asset and invoice finance and £25,001 for term loans and overdrafts. Terms range from three months up to three years for overdrafts and finance facilities and up to six years for loans and asset finance. The government guarantee is for 80% and the interest rate is capped at 14.99%. You are responsible for repaying 100% of the loan.
You are still eligible to apply if your business has previously accessed a government backed scheme such as a bounce back loan although in some circumstances there may be a limit to the amount you can borrow under the RLS.
A list of leaders providing finance thought the RLS can be found on the British Business Bank website.