There’s good news for businesses that continue to grapple with the impact of the Covid-19 pandemic. Applications for the government-backed financial support programme, the Recovery Loan Scheme (RLS), have been extended by six months.
Originally scheduled to close to new applications on 31 December 2021, this deadline has now been pushed back to 30 June 2022.
However, it’s important to be aware of changes to the RLS from 1 January 2022. While the scheme will run until mid-2022, all loan offers made from 1 January 2022 will be more restricted in scope.
If your business has taken a CBILS or bounce back scheme loan it is also eligible for finance under RLS. This situation continues until 30 June 2022.
From 1 January 2022 all loan offers under RLS will:
Because changes apply to all finance offers made from 1 January 2022, if you want to take advantage of finance under the original scheme, you need to allow time for your application to be processed and an offer made before that date.
Also bear in mind that the final days of availability for the original RLS finance fall during the holiday period, meaning it may take longer for applications to be processed.
If your business continues to need a working capital boost, because of the lingering effects of the pandemic, you have a number of options under the RLS.
The types of finance available include:
No personal guarantees will be taken on borrowing of under £250k.
Facilities of up to £10m per business are available on offers made up to 31 December 2021. From 1 January 2022 this falls to £2m per business.
The fees and interest on these arrangements cannot be more than 14.99%. While repayments on term loans usually begin from the month after the loan is provided, some lenders are offering an interest-only option for the first year, which helps with cashflow.
Every week we’re helping businesses secure the funding they need to help protect their future.
Some have already taken loans under CBILS or the bounce back scheme. They’re experiencing a slow return to pre-pandemic levels of commercial activity, meaning they need an additional cashflow boost.
We have also secured RLS loans for businesses that were not eligible for CBILS or bounce back support.
Don’t assume that because you didn’t qualify for support in the past, there’s no point in applying now. Because there are changes in the assessment criteria, you may find that you’re now able to benefit from a loan.
We work with a wide variety of funding providers, many of whom are lenders through the Recovery Loan Scheme.
Don’t allow a lack of capital to threaten the viability of the business you’ve worked hard to build. Get in touch with us today to see how we can help you.