An extension to the Loan Recovery Scheme
An extension to the Recovery Loan Scheme
The Recovery Loan Scheme (RLS) was initially launched on 6 April 2021 in order to provide financial support to those businesses as they recover and grow following the Coronavirus pandemic. Those businesses that have previously taken out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) or a Bounce Back Loan (BBL) are still able to apply for the RLS.
Businesses with turnover of up to £45 million can apply for the loan and the deadline has now been extended to June 2022. In order to be eligible for the RLS businesses need to demonstrate:
- Business has been impacted by the pandemic.
- They are trading in the UK.
- A minimum of two years’ trading history.
- The loan must be for business purposes.
In order to help businesses, the government will provide a guarantee coverage of 70% to lenders. The business is still 100% liable for the debt. At the Autumn Budget 2021, the following changes to the RLS were announced:
- The maximum amount of finance is limited to £2million per business.
- The government has reduced their guarantee to lenders to 70%.
- Businesses must have a turnover of £45million or less.
Sean Daniel, Managing Director said “With many businesses still feeling the impact of the pandemic an extension to the Recovery Loan Scheme is very welcomed.”
If you would like a chat about funding options for your business, please get in touch with the friendly Clear Vision Financial Management team. You can call us on 01794 330025 or email us