Recovery Loan Scheme

The FSE Group is an accredited delivery partner for the Recovery Loan Scheme (RLS) across London, The Midlands, Yorkshire and the Humber and the East of England.

Through the Greater London Investment Fund we can support eligible businesses with loans ranging from £100k – £1.5m

In the Midlands through the Midlands Engine Investment Fund we can support eligible businesses with loans ranging from £100k – £1.5m.

In Yorkshire and Humber through Finance Yorkshire Business Loans we can support eligible businesses with loans ranging from £25k - £250k.

In the East of England through the East of England Regional Growth Loan Scheme we can support eligible businesses with loans ranging from £50k - £500k.

The new iteration of the Recovery Loan Scheme (RLS) launched in August 2022 and is designed to support access to finance for UK small businesses as they look to invest and grow.

The Recovery loan Scheme aims to improve the terms on offer to borrowers. If a lender can offer a commercial loan on better terms, they will do so.

Businesses that took out a CBILS, CLBILS, BBLS or RLS facility before 30th June 2022 are not prevented from accessing RLS from August 2022, although in some cases it may reduce the amount a business can borrow.

Recovery Loan Scheme-backed facilities are provided at the discretion of the lender. Lenders are required to undertake their standard credit and fraud checks for all applicants.

THE FSE GROUP RLS SCHEME FEATURES:

  • RLS amounts available: London or Midlands based businesses between £100,000 and £1.5m. Yorkshire and Humber between £25k and £250k. East of England between £50k and £500k.
  • Term length: Term loans for up to 5 years.
  • Personal Guarantees: Personal guarantees can be taken at the lenders discretion, in line with their normal commercial lending practices. Principal Private Residences cannot be taken as security within the scheme.
  • Guarantee is to the Lender: The scheme provides the lender with a 70% government-backed guarantee against the outstanding balance of the facility after it has completed its normal recovery process. The borrower always remains 100% liable for the debt.

Additional Information:

  • Subsidy: The assistance provided through RLS, like many Government-backed business support activities, is regarded as a subsidy and is deemed to benefit the borrower. There is a limit to the amount of subsidy that may be received by a borrower, and its wider group, over any rolling three-year period. Any previous subsidy may reduce the amount a business can borrow. All borrowers in receipt of a subsidy from a publicly-funded programme should be provided with a written statement, confirming the level and type of aid received. Borrowers will need to provide written confirmation that receipt of the RLS facility will not mean that the business exceeds the maximum amount of subsidy they are allowed to receive.

  • Northern Ireland Protocol: All borrowers will need to answer some questions to determine whether they are inside or outside the scope of the Northern Ireland Protocol, to determine the relevant subsidy limit and hence the potential maximum amount they can borrow under RLS.

ELIGIBILITY CRITERIA:

  • Turnover limit: The scheme is open to small 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 and have a material part of their operations in London or the Midlands.
  • 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.

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

Supporting Information Required for RLS Applications:

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

  • A full application form.
  • Management accounts.
  • Assets and liabilities statements.
  • Historic accounts – last 3 years if trading that long.
  • 24-month forecast, including cash flow, P&L and balance sheet.
  • Trade debtors and creditors.
  • The amount of any previous subsidy / state aid received.

Decision making on whether a business is eligible for RLS is fully delegated to the British Business Bank’s accredited RLS lenders.

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.

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

British Business Bank