The Recovery Loan Scheme (RLS) has been extended until 30 June 2022, find out how with BLG you can grow your business.
What The RLS offers
Back in April 2021, the UK Government launched the Recovery Loan Scheme (RLS). This aimed to support access to finance for UK businesses as they recovered from the global pandemic.
If your business has suffered due to Covid-19, you can apply for the scheme. It can be used for any legitimate business purpose, whether that is cashflow, investment or growth. The scheme is open to all however, be mindful if you have borrowed from any of the other coronavirus loan schemes. The RLS loan is still available to you however, it might change the amount you can borrow.
Originally, the scheme was intended to finish at the end of 2021 however, thankfully for many businesses it has been extended. Within the Autumn Budget 2021, the UK government announced it would extend the scheme until June 2022.
How It Has Helped Business So Far
Research has shown that there are now over 76 accredited lenders that have offered over £1bn to small UK businesses towards sustainable recovery. Additionally, 14% of brokers saw an increase in demand for loans, leading to submitting 50% more applications than previously.
At the time of the RLS Launch, Catherine Lewis La Torre, CEO, British Business Bank, stated: “Businesses up and down the country are beginning to look beyond the pandemic towards the opportunities available to them in the recovery. The British Business Bank is committed to supporting smaller businesses in accessing the finance they need to grow sustainably in the future. In meeting the £1 billion milestone, the Recovery Loan Scheme is demonstrating its impact by helping thousands of companies to fund their further development.”
The Latest Updates
As of the 1st of January 2022, the RLS load has been extended for an additional 6 months. Although, consists of the following changes:
- The scheme will only be open to businesses with a turnover not exceeding £45m per annum
- The maximum amount of finance available will be £2 million per business (maximum amount per Group limited to £6m)
- The guaranteed coverage that the government will provide to lenders will be reduced to 70%
How BLG Can Help You
If you are looking to refinance previous loans or need extra help financing your development project, BLG is here for you. As an accredited lender, specialising in property development finance across the UK. We can help you with the financing needs of your projects.
We are specialists in property development finance, both residential and commercial. Our dedicated team of more than 300 years’ experience can guide and advise you in the best direction. Supporting all regional developers, unlike high street lenders, providing flexible terms and fast decision making.