Late review – the Recovery Loan Scheme

4 Stars ****

I’m sure we are all familiar with Bounce Back Loans and the larger CBILS scheme – as someone recently said to me… ‘that is so last year’….and we now have the new scheme called the Recovery Loan Scheme (RLS).

This was launched through the Government agency, the British Business Bank, on 6 April 2021, and they have slowly been adding accredited lenders.

I have noticed that lenders are looking to use this product for new borrowing requests – quite understandable as the banks enjoy an 80% guarantee from the UK Government.

The RLS is designed to provide financial support to businesses across the UK as they recover and grow following the coronavirus pandemic – including managing cashflow, investment and growth.

If your business has already borrowed from any of the other coronavirus loan schemes, RLS is still open to you, although the amount borrowed already may limit the amount that can be borrowed under RLS. Common sense really.

The banks using RLS for new borrowing are clever, and hats off to them for actively using it, although you should check that the credit enhancement from the Government guarantee is reflected in the pricing charged to you!