The "Recovery Loan Scheme (RLS) is a support scheme introduced to help support businesses through COVID-19 and takes over from the CBILS and BBL scheme that was introduced at the outset of the pandemic.
he Recovery Loan Scheme is currently open to businesses of any size to support them to access loans and other kinds of finance so they can recover after the pandemic and transition period.
Up to £10 million is available per business. The actual amount offered and the terms are at the discretion of participating lenders.
The government guarantees 80% of the finance to the lender. As the borrower, you are always 100% liable for the debt.
What you can get
- term loans or overdrafts of between £25,001 and £10 million per business
- invoice or asset finance of between £1,000 and £10 million per business
No personal guarantees will be taken on facilities up to £250,000, and a borrower’s principal private residence cannot be taken as security.
How long the loan is for
The maximum length of the facility depends on the type of finance you apply for and will be:
- up to 3 years for overdrafts and invoice finance facilities
- up to 6 years for loans and asset finance facilities
Changes from 1 January 2022
At Autumn Budget 2021, the Chancellor announced that the Recovery Loan Scheme would be extended until 30 June 2022.
From 1 January 2022, the following changes will come into force:
- The scheme will only be open to small and medium sized enterprises
- The maximum amount of finance available will be £2 million per business
- The guarantee coverage that the government will provide to lenders will be reduced to 70%
These changes will apply to all offers made from 1 January 2022.
Commercial Mortgage Guide
- What is a commercial mortgage?
- When are commercial mortgages applicable?
- Who can apply for a commercial mortgage?
- what-is-the-Recovery-Loan- Scheme
- Where can I find the best deals?
- Can I mortgage leasehold and freehold properties?
- What are typical arrangement fees?
- What other fees might I incur?
- What are the benefits of using a broker?
- What is the typical loan to value ratio (LTV)?
- Why can't I find a table of rates?
- Which properties qualify as commercial?
I’ve just heard from my solicitor that he has the funds in from Interbay, had paid off our mortgage and is sending the balance on to me, which means that finally this is all over and I can move on. Thank you all so much for your help in arranging the mortgage, I am sure that my future plans will involve needing to arrange finance, and I will happily come back to you again.