The Recovery Loan Scheme (RLS) launched on the 6th April.
It is a replacement to the previous Government supported debt schemes, the Bounce Bank Loan Scheme (BBLS) and the two larger loan schemes, CBILS and CLBILS. All of these closed to new applications on the 31st March. The new scheme is a hybrid of the previous schemes and share a number of the characteristics of the scheme. Some of the key features are:-
- You can borrow from £25,001 to £10M for for overdrafts or term loans
- You can borrow from £1K to £10M for Asset Finance or Invoice Finance
- There is no minimum turnover requirement to apply
- The maximum loan is not directly linked to your business turnover
- The Government will provide an 80% guarantee to the lender
- You do not need to repay any existing Bounce Back Loans or CBILS loans
- Applicants will be subject to credit & fraud checks.