The Recovery Loan Scheme was launched on 6 April 2021 to provide businesses with extra financial support to help them to accelerate recovery post-COVID19. This article explains how the Recovery Loan Scheme works and who can apply.
The Recovery Loan Scheme is available to all businesses that were affected by the Coronavirus pandemic. You can use it to help manage your cash flow and support further investment and growth over the coming years.
The scheme is open to all sectors except:
Even if you applied for other financial support during the pandemic, such as the loans shown below, you might still be eligible to apply for this scheme.
The Recovery Loan Scheme (RLS) is available to businesses until 31 December 2021. Companies can apply for a loan of up to £10 million. The government guarantees 80% of the finance to the lender.
However, it is essential to remember that as you are borrowing the money for your business, your business is 100% liable for the debt, so you must make sure that you will be able to make the repayments before you apply. This includes the costs of interest on the payments and any associated RLS facility fees.
You can access the Recovery Loan Scheme in different ways, depending on the needs of your business. The minimum term length is three months. The maximum term length depends on the type of finance that you apply for, as shown below.
The Recovery Loan Scheme is available through several lenders which the British Business Bank has accredited. These lenders have all agreed that the annual effective rate of interest, upfront fee and other fees will not be more than 14.99%.
To find the list of lenders, click on this link – Recovery Loan Scheme Accredited Lenders.
It may be worth checking with your bank first to see if they can offer you a commercial loan on better terms; this may be a better and more accessible option for you.
If you need any advice on the different loans available to your business or support with financial planning over the coming year, then please do contact us.
You can call 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
Call us today on01623 490120
or email info@watsonk.co.uk
When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
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