The RLS is designed to help businesses get back on their feet, recover, and grow after the pandemic and transition period, providing loans and other types of finance to businesses of any size.
06 April 2021
31 December 2021, subject to review
Lenders accredited by British Business Bank
Term loans of up to £10m per business (£30m per group) on repayment terms up to 6 years (term loans and asset finance) and up to 3 years (overdrafts and invoice finance). Businesses will need to cover any arrangement fees and interest costs from the outset.
Eligibility criteria include:
A loan under the RLS is secured by a government-backed 80% guarantee.
less than £250k: no personal guarantee required.
more than £250k: lender has discretion to decide whether to require a personal guarantee but no recovery action can be taken over a Principal Private Residence and recoveries are capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied.
Any legitimate business purpose including, but not limited to, managing cashflow, or for investment and growth purposes.
Rates vary by lender but together, annual interest, the upfront fee, and other fees, cannot be more than 14.99%.
Yes, subject to existing facilities and lender requirements.
Yes, but note, there’s no Business Interruption Payment (BIP) under RLS so any remaining BIP entitlement will need to be foregone.
Yes, in certain circumstances, provided your business fulfils the Scheme eligibility criteria.
|Amount||£50,000 – £5m||Up to £10m|
|Term||Up to 10 years||Up to 6 years|
|Available to apply for now||No||Yes (current deadline 31/12/2021)|
|Government pays 1st 12 months interest||Yes||No|
|Government pays upfront fee on your behalf||Yes||No|
|Minimum annual turnover||£200k +||No minimum|