Eligibility Criteria

• Turnover limit: The scheme is open to smaller businesses with a turnover of up to £45m (on a group basis, where part of a group).

• UK-based: The borrower must be carrying out trading activity in the UK. No Covid-19 impact test required: Unlike with the previous phases of the scheme, for most borrowers there is no requirement to confirm they have been affected by Covid-19. For charities and Further Education colleges, confirmation of Covid-19 impact will still be required in some instances.

• Viability test: The lender will consider that the borrower has a viable business proposition but may disregard any concerns over its short-to-medium term business performance due to the uncertainty and impact of Covid-19.
• Business in difficulty: The borrower must not be a business in difficulty, including not being in relevant insolvency proceedings.
• Purpose: the facility must be used to support trading in the UK and cannot be used to support certain export related activities. There are certain restrictions on the use of proceeds of facilities in the agriculture, fisheries and aquiculture, and road freight transport sectors for borrowers impacted by the Northern Ireland.
  Please note, the following are not eligible under RLS:– Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
  – Public sector bodies
  – State funded primary and secondary schoolsYou will need to provide certain documents when you apply for an RLS-backed facility. Please refer to our Lending Criteria for general requirements.Decision-making on whether a business is eligible for RLS is fully delegated to the British Business Bank’s accredited RLS lenders. For more information on our Recovery Loan Scheme support for development finance, please contact us to discuss.

Business Finance Support

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services.

See further guidance and resources

The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA.

Visit http://www.british-business-bank.co.uk/recovery-loan-scheme

Residential property development finance lenders

BLG, established in 2003, has the necessary experience to help residential developers overcome the boundaries that can be stipulated by the high street banks. We will give you access to the money you need to fund your land purchases and the building of houses, flats, eco-homes, or mixed‐use buildings. Our residential property finance also gives you access to top‐up funds or previous residential property development loans for build to let landlords.

Secure your finance with BLG

Whether you are looking for stretch senior development finance, commercial development finance, or build to let development finance, BLG is ready to help you secure the residential property development loan you need. We also help arrange mezzanine development finance working with third-party mezzanine funding providers.

BLG has a patient team of experts ready to help. We offer support from pre‐sale to purchase and completion. Our goal is to help you build, so contact our team today to find the right residential development loans to suit your needs.

Projects Funded With Residential Development Loans From BLG​

In need of stretch senior funding funding?

Our stretch senior development finance program presents a comprehensive array of funding options tailored to bolster your development endeavors. We are well-positioned to extend financial support by covering up to 85% of your project costs, which can increase to 90% when factoring in rolled-up interest. Moreover, we provide financing equivalent to up to 65% of the Gross Development Value, with the possibility of reaching 70% when accounting for rolled-up interest.

BLG’s stretch senior development finance packages are accessible in varying amounts, ranging from £1,000,000 to £15,000,000, ensuring flexibility that aligns with your specific project requirements. Recognising that development timelines can fluctuate, our financing solutions are designed to accommodate projects spanning from 12 to 24 months, enabling you to embark on projects of varying scales confidently. Whether your vision entails a substantial large-scale development or a more modest undertaking, our stretch senior loans stand ready to support and propel your aspirations forward.

What Exactly Is Stretch Senior Debt?

At first glance, the concept of a stretch finance loan, sometimes referred to as an over advance loan, might seem intricate, but its essence is quite straightforward. These specialised financing options are crafted by experts in the realm of property development finance, such as BLG, to provide property developers with access to a higher level of financial support.

Stretch senior debt distinguishes itself by typically offering a more substantial loan-to-cost or loan-to-value ratio than what is conventionally available from mainstream lenders and banks. For instance, while traditional banks might extend loans covering up to 60% of project costs, BLG’s stretch senior loans are accessible for up to 85% of project costs, with the potential to reach 90% when considering rolled-up interest. Another perspective on stretch senior development finance is that it can encompass up to 65% of the Gross Development Value, potentially increasing to 70% when rolled-up interest is factored in.

In practical terms, this means that while conventional banks and high street lenders may expect property developers to inject cash equivalent to 40% of project costs into the venture, BLG offers the flexibility for developers to contribute as little as 13% of their project expenses when incorporating rolled-up interest. This approach empowers developers to leverage their resources more efficiently and optimize their capital allocation for their development projects.

Projects Funded With Stretch Senior Loans From BLG​

Bridging Loans Linked to Developments

Bridging Loans can be an excellent financing option for property developers who are looking to undertake new development projects. These short-term loans can provide the necessary funds to cover the initial costs of a new development, allowing developers to get their project off the ground while they wait for longer-term financing options to become available.

Typical Guidelines

• Loans from £500k to £10m
• Generally, loan term up to 12 months but longer term can be considered
• Loan to Values considered on a case-by-case basis but generally up to 70% including interest
• Existing projects that have reached practical completion

As a leading lender specialising in property finance, our expertise encompasses a wide range of funding options, including residential and commercial development finance, bridging loans, and RLS funding supported by the British Business Bank. Contact a BLG team member today to find out more on how BLG can help your next project.

Projects Funded With Bridging Loans From BLG​

Are you in search of a loan for your commercial development project?

BLG specialises in offering commercial property financing solutions tailored to the needs of developers and business owners engaged in the construction, conversion, or renovation of commercial properties. Our comprehensive range of commercial development loans is available for projects located in England, Wales, and areas exhibiting robust demand.

One notable advantage of partnering with BLG is that we place no restrictions on the number of units you intend to create within your commercial development. This flexibility arises from the fact that our loans are fully secured, with a 100% collateral position on the development property, ensuring a solid financial foundation for your project.

Whether your commercial development encompasses mixed-use properties or fully dedicated commercial ventures, BLG is well-equipped to provide the necessary commercial property finance to propel your project forward. Our commitment is to empower you with the financial resources and support needed to bring your commercial vision to fruition.

Commercial Property Lending Conditions 

Our commercial property finance loans offer:

• Lending to 65% Gross Development Value or 70% if pre-let.
• Loans from £1m to £10m.
• Lending for build duration typically of 12m to 24m, but longer terms can be considered.
• Your monthly interest can be added to the loan, so you have no payments during the loan term.

Your Commercial Property Finance Application

We specialise in assisting clients with their commercial development loan needs, offering comprehensive support in assembling the essential elements required for a successful application. When seeking commercial property development finance, one key strategy to increase your chances of approval is minimising the lender’s perceived risk. Achieving this entails furnishing a thorough project dossier, complete with detailed information about the project itself and the experience of your team.

A critical aspect of your financing approach involves having a well-thought-out exit strategy. While it’s common for commercial development financing to be contingent on pre-lease or pre-sale agreements, BLG stands out by extending speculative commercial development finance options for specific property types and in select geographical regions. This means that even if you don’t have pre-existing lease or sale commitments in place, you may still have access to the funding you need to bring your commercial development aspirations to life.

Our goal at BLG is to provide you with the financial resources and expertise necessary to navigate the complexities of commercial development loans successfully. By proactively addressing risk factors, offering flexible financing solutions, and considering speculative projects, we aim to be your trusted partner in realising your commercial property development ambitions.