Recovery Loan Scheme

BCRS Business Loans is proud to be a delivery partner for the Recovery Loan Scheme (RLS) – supporting businesses in the West Midlands region of England with loans ranging from £25,001 – £150,000.

RLS launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.

RLS aims to help businesses affected by Covid-19 and can be used for business purposes, including: managing cashflow, investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes.

Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.

A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they should do so.

The Scheme will run until 31 December 2021, subject to review.

RLS Scheme Features via BCRS Business Loans

RLS amounts available from BCRS: Minimum RLS loan facility of £25,001 up to a maximum facility of £150,000.

Term length: Term loans are available from twelve months up to five years.

Interest and fees to be paid by the borrower from the outset: Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.

Access to multiple Covid-19 schemes: Businesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under RLS.

Personal Guarantees are not required for RLS facilities from BCRS.

Guarantee to the Lender: The scheme provides the lender – in this case BCRS Business Loan – with a government-backed guarantee against the outstanding balance of the facility. The borrower always remains 100% liable for the debt.

Eligibility for RLS Facilities via BCRS Business Loans

Covid-19 impact: The borrower must confirm that it has been impacted by Covid-19.

UK-based: The borrower must be carrying out trading activity in the UK.

Viability test: The business must have a sound borrowing proposal that demonstrates the viability of the business and how its finances will recover. However, we recognise that short-to-medium term business performance may be impacted by the uncertainty stemming from Covid-19.

Credit and fraud checks for all applicants: We will be required to undertake credit and fraud checks for all applicants.

Turnover limit: BCRS has a turnover limit of £45 million per annum.

Ineligible sectors: Please note that the following sectors are not eligible under RLS:

  • Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
  • Public sector bodies
  • State funded primary and secondary schools
  • Property investment and development (as per BCRS’ lender-specific sector restrictions).

Supporting Information Required for RLS Applications

You will need to provide certain documents when you apply for an RLS-backed facility from BCRS Business Loans. These are likely to include:

  • A full application form
  • Management accounts
  • Assets and liabilities statement
  • Historic accounts (last 3 years or as long as possible if trading less than that)
  • Twelve-month cash flow forecast
  • Personal credit reports for all directors and shareholders with over 25% shareholding
  • Trade debtors and creditors

Businesses in the West Midlands that require a loan in order to kickstart recovery plans after being impacted by Covid-19 can apply directly through BCRS Business Loans, who can assess if your application meets RLS criteria.

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.

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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

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