Applications open for Business Recovery Loan Scheme
The Business Recovery Loan Scheme, announced in the Chancellor’s Budget on 3 March, opened for applications on 6 April 2021.
What is the Business Recovery Loan Scheme?
The scheme is government-backed and is the successor to the BBLS, CBILS/CLBILS. It is available to businesses who are adversely affected by the pandemic and is provided by a number of different lenders via a variety of facilities, including termed loans, overdrafts, invoice finance and asset finance.
Which businesses are eligible to apply?
All UK businesses, of any size that are currently trading and financially affected by the pandemic and can show that their business:
Which businesses cannot apply?
What are the key features of the scheme?
For what purpose can businesses use the finance?
Loans can be used for any legitimate business purpose, including management of cashflow, investment and growth.
How do businesses apply for a Business Recovery Loan?
There are currently over 20 accredited lenders – details can be found here https://www.british-business-bank.co.uk/ourpartners/recovery-loan-scheme/current-accredited-lenders/
Borrowers should apply directly to the lender.
What documents must businesses provide?
Requirements will vary from lender to lender but are likely to include, as a minimum, management accounts, business plan, historic accounts, and details of assets.
Lenders, at their discretion, may overlook concerns over short-term to medium-term performance owing to the pandemic. The checks and approach will vary between lenders.
When does the RLS end?
Applications will close on 31 December 2021 although this is subject to review.
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