Recovery Loan Scheme: Are you eligible?
The Recovery Loan Scheme (RLS) is a government scheme that aims to assist UK businesses by providing them with access to financial help. The RLS was designed to be used for business purposes and is available to a variety of industries.
When will the Recovery Loan Scheme end?
It was initially introduced in April 2021 to assist businesses recovering from the Covid-19 pandemic. Whilst the scheme was only meant to run through April to December of 2021, the government is continuing to help small business to recover from the effects of the pandemic by extending it for a further two years. This means that this scheme is scheduled to end in 2024. It is hoped that this will support businesses though the rising costs of living.
Which businesses are eligible for the Recovery Loan Scheme?
If your business is experiencing cost pressures and meets all of the criteria below, the RLS can support you.
- Turnover cap: The RLS scheme is available for small businesses that have a turnover of up to £45 million.
- UK centred – The receiver must be operating its trading activities within the United Kingdom and making more than 50% of its income in transactions.
- Feasibility test: Upon inspection of the business proposition, the lender has the authority to surmise whether it is viable or not. If this lender has any concerns over its performance due to uncertainty and impact of Covid-19.
- Business in trouble: The recipient of the RLS must not be business difficulty and/or in bankruptcy proceedings.
- No Covid-19 effect proof necessary: Except for charities and Further Education colleges, receivers of the RLS will not have to confirm the extent or whether they have been affected by Covid-19.
- Funding restrictions: Recipients are required to be able to produce written confirmation that by receiving the RLS, your business will not be exceeding the maximum amount of money that you are authorised to receive. All recipients who are granted funding from a publicly funded program should be provided with a written statement, confirming the amount and type of aid received.
If you are looking for more information on RLS, or have any further questions, get in touch with us on: 01903 2340494