The Recovery Loan Scheme (RLS) was introduced by the UK government in April 2021 with the goal of assisting UK companies in their recovery from the Covid-19 pandemic.
The initial plan was for the RLS to operate until the end of 2021, subject to a review, but that was changed. During the Autumn Budget of 2021, the government announced that the Recovery Loan Scheme will be extended for six months until 30 June 2022, with the adjustments taking effect for any offers made after 1 January 2022;
A summary of these changes:
- In order to participate in the scheme, a company’s annual revenue must not exceed £45 million.
- The maximum amount of financing available to each business will be £2 million
- The government’s guarantee coverage for lenders would be decreased to 70%.
The deadline for completed applications to the Recovery Loan Scheme is June 30, 2022. Any applications submitted after this date will not be considered for review. As a reminder, both your completed and signed applications, as well as official offers from the Bank, must be received by this date to be eligible for consideration for funding. Due to the time it takes to process applications, lenders cannot promise that the loan will be evaluated and approved in time for your application.
If you need help applying for the Recovery Loan Scheme before June 2022, please get in touch with us at email@example.com and we’ll support you through the process.