Recovery Loan Scheme (RLS)
Following the success of the Coronavirus Business Interruption Loan Scheme (CBILS) & Bounce Back Loans Scheme (BBLS) introduced by the government back in 2020, a new Recovery Loan Scheme (RLS) has been launched. (April 2021)
RLS provides Government-backed loans for UK businesses as they grow and recover from the disruption of the COVID-19 pandemic.
Firstly, some context, here are the figures relating to the previous schemes (which are now closed):
1,531,095 Bounce Back Loans Scheme (BBLS) worth £46.5 billion
101,666 approved top-up loans under BBLS valued at £900 million
98,344 loans worth £23.3 billion through the Coronavirus Business Interruption Loan Scheme (CBILS)
716 loans worth £5.3 billion through the Coronavirus Large Business Interruption Loan Scheme (CLBILS)
Comparing RLS to CBILS:
Can I apply for a RLS if I have a CBILS or BBL?
Borrower may have other facilities supported by BBLS or CBILS/CLBILS, and may not be required to refinance them
What is the maximum term of the RLS?
What is the maximum I can borrow on RLS?
Maximum amount per borrower limited to the lesser of:
£10 million – or one of
(a) Double a businesses’ wage bill for 2019 or the latest available year
(b) 25% of 2019 turnover
Justified liquidity needs for the next 18 months
Maximum amount per group limited to £30 million