Originally written by Anna Jordan on Small Business
The Government has launched its long-awaited recovery loan scheme today (April 6).
Announced at last month’s Budget, the recovery loan scheme (RLS) has replaced the Bounce Back Loan Scheme (BBLS) and the Coronavirus Business Interruption Loan Scheme (CBILS).
The aim of the scheme is to help businesses of all sizes to access loans and other finance so they can recover from the pandemic and move forward. It can be put towards improvements like managing cash flow, growth and investment.
Up to £10m is available per business. The minimum funding is £1,000 for asset and invoice finance and £25,001 for term loans and overdrafts. The total amount offered is at the discretion of the participating lender. They will carry out credit checks and fraud checks before granting you the finance.
>See also: What is invoice finance?
The Government is guaranteeing 80 per cent of the finance to the lender and the borrower will always be 100 per cent liable for the debt. The annual interest rate and upfront and other fees cannot be more than 14.99 per cent.
Unlike BBLS and CBILS, the RLS is being lent on standard commercial banking terms. Kreston Reeves says that businesses will need to