Recovery Loan Scheme

Eligibility

To be eligible for borrowing under the Recovery Loan Scheme, your business must:

• have a turnover of less than £45m
• be UK-based and operating in the UK
• have been affected by the coronavirus pandemic
• be able to afford to repay as per the terms of the borrowing agreement.

Key facts about the Recovery Loan Scheme:

• RLS loans can be used for business purposes including managing cash flow, investment and growth.
• A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.
• Applications are currently open up to 30 June 2022 – but this could change.
• The minimum amount we can lend under the scheme is £1,000 for asset and invoice finance and £25,001 for loans and overdrafts. The maximum is £2 million per business (maximum £6 million per group).
• You are liable for paying back 100% of the debt, and meet the costs of interest payments and any fees associated with the loan.
• All applications will be subject to credit and fraud checks and lending assessments.
• We will consider whether you have a viable business proposition, but may disregard any concerns over your short to medium-term business performance due to the impact of coronavirus
• Recovery Loans can be used for business purposes, and are designed to support businesses that can afford to take out additional finance.
• Security may be required, subject to application.
• If you’re borrowing £250,000 or less, we won’t take any form of personal guarantee.
• If you’re borrowing more than £250,000 we have the discretion to decide whether to take personal guarantees. However, above £250,000, the maximum amount that can be covered by a personal guarantee is capped at 20% of the outstanding loan balance after the proceeds of business assets have been applied.
• Your primary residential property can’t be taken as security under the scheme.
• The following businesses aren’t eligible to apply: banks, building societies, insurers and reinsurers (excluding insurance brokers), public sector bodies, state-funded primary and secondary schools.
• Guarantee to the Lender: The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.