On 6 April, the Recovery Loan Scheme (RLS) was introduced to replace the government’s coronavirus lending schemes.

The RLS provides financial support to businesses affected by the COVID-19 pandemic. The scheme gives lenders a guarantee of 80% on eligible loans between £25,000 and £10 million to give them confidence in continuing to provide finance to UK businesses.

The RLS is open to all businesses, including those who have already received support under the previous COVID-19 guaranteed loan schemes: the Bounce Back Loan Scheme; the Coronavirus Business Interruption Scheme and the Coronavirus Large Business Interruption Scheme. However the amount businesses have borrowed under an existing scheme may, in certain circumstances, limit the amount they may borrow under RLS.

The RLS is initially available through a number of lenders accredited by the British Business Bank.

Internet link: British Business Bank website