Recovery Loan Scheme (RLS) : 5 days to go

Announced in the March budget, the new RLS is to launch on 6 April 2021 and is expected to run until 31 December 2021.

RLS replaces CBILS and BBLS and is aimed at businesses that have been affected by Covid-19. Whilst the funds can be used for any business purpose the entity will need to demonstrate it can afford to repay the additional debt.

A summary of the scheme is as follows:

1. Turnover : no turnover limit.

2. Maximum : max facility is £10m per business.

3. Minimum : starts at £1k for asset/invoice finance; £25k for term loans/overdrafts.

4. Facilities : overdrafts, term loans, asset finance and invoice discounting.

5. Term : term loans/asset finance up to 6 yrs; overdrafts/invoice finance up to 3 yrs.

6. Cost : interest and fees will vary and are borne by the borrower from inception

Those businesses that have accessed CBILS and BBLS will be able to participate in RLS, however the maximum they may borrow will depend on the the lenders assessment of affordability

The RLS will be available through accredited lenders. Details of those lenders will be published in due course.