The Recovery Loan Scheme (RLS) launched on 6 April to replace older Coronavirus Loan Schemes such as BBL & CBILS.
The scheme will provide financial support of up to £10m to businesses across the UK as they recover from the pandemic, and the government will guarantee 80% of the finance to lenders until December 31, 2021.
However, businesses should be aware that options for the recovery loan scheme are currently very limited.
There are only 18 accredited lenders signed up to the Recovery Loan Scheme, 10 of which are high street banks with limited appetite for businesses that would be new to the bank.
The other eight lenders are specialists, meaning only a small amount of SMEs will be able to obtain funding under the scheme.
That’s why we’re advising businesses to go to their own banks before looking at other options.
For those businesses that don’t have that option, the good news is that we are waiting and expecting the number of accredited lenders to increase substantially over the coming weeks.
As more of our funders become accredited, we’ll be able to offer more businesses the aid needed in their COVID recovery plans.
And even though we’re encouraging businesses to be patient, we’re still here to help.
To get further information about the Recovery Loan Scheme, please fill in the form below, email firstname.lastname@example.org or call 0115 9586872.