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About the RLS Scheme
The Recovery Loan Scheme (RLS) is a government scheme designed to support your business during the financial repercussions of coronavirus.
The RLS was launched on 6 April 2021 to replace the previous Covid-19 government debt schemes (CBILS, CLBILS and BBLS) all of which closed to new applicants on 31 March 2021.
At Aurora Capital, we want to ensure all businesses have the opportunity to return to a comfortable financial state. We have already helped over 100 businesses access £10m + through the scheme, so why not see how much your business qualifies for.
The RLS has recently been extended until June 2022, however the government guarantee will be reduced to 70%.
Key features and benefits
- Suitability: Businesses that have been trading for 2 years + and had a turnover of at least £100k prior to Covid-19.
- Purpose: Working capital, growth, expansion, stock, marketing etc.
- Amount: Loans ranging from £1k – £1m, dependant on the lender
- Term: Up to 6 years. Some lenders offer interest only terms.
- Cost: Rates starting from 2.9% per annum. Lenders may also charge an arrangement fee
- Security: No personal guarantees up to £250k. 20% partial personal guarantee for loans surpassing this amount
- Speed: Applications can be processed within 24 hours from receiving a full proposal.
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Is the Recovery Loan Scheme the right option for my business?
If you’re a small or large business that has suffered financially due to the COVID-19 pandemic and now needs support, the Recovery Loan Scheme could be the right option for you. The scheme will provide you with extra funding to get your company back on track after coronavirus. Loans up to £250,000 do not require a personal guarantee.
RLS Scheme FAQs
Am I eligible for the Recovery Loan Scheme?
All UK businesses that have been trading for longer than 2 years and had a turnover of £100k prior to Covid-19 are eligible to apply for the Recovery Loan Scheme. You will also need to prove that your business:
- Would be viable were it not for the pandemic, or is viable
- Has been distressed by the COVID-19 pandemic
- Is not in collective insolvency proceedings (alternative rules may apply if your business is in scope of Northern Ireland Protocol)
How much can I get with the Recovery Loan Scheme?
Businesses can get a term loan of between £25,001 and £10 million. After applying for the Recovery Loan Scheme with Aurora Capital, we’ll be able to advise you how much you are eligible to borrow.
What types of recovery scheme loans are available?
Each business can get two different types of loans with the Recovery Loan Scheme:
- Term loans or overdrafts of £25,001 up to £10 million
- Invoice or asset finance of £1,000 up to £10 million
Can I apply for the RLS If I have been refused a loan in the past?
Yes – it doesn’t matter if you’ve been refused Government funding in the past, or even a business loan. You can still apply for the Recovery Loan Scheme if your business needs support after coronavirus. Following your application, we’ll make an informed decision on whether you meet the criteria or not. All decisions for the Recovery Loan Scheme are on a case-by-case basis.
Can I apply for the Recovery Loan Scheme (RLS) even if I already have a CBILS or Bounce Back loan?
Yes – businesses that have received support under existing Government coronavirus loan schemes will still be eligible to apply for finance under this scheme, provided they meet all other eligibility criteria.
Will I need a personal guarantee to be able to apply?
The Recovery Loan Scheme only requires a 20% partial personal guarantee if you are borrowing more than £250,000. When applying for a recovery loan under £250,000, you do not need a personal guarantee.
Can I take more than one facility through the scheme?
Yes – subject to meeting the scheme eligibility requirements, and provided you do not borrow more than the maximum amount you are entitled to. The maximum amount a business can borrow differs across different facilities and schemes. It will depend on a lender’s assessment of affordability.
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Prefer to talk? Call us on 020 3355 7462
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