Time is running out for businesses to apply for Recovery Loans, the follow on Covid-support product from the CBILS.
In order to qualify for the Recovery Loan Scheme (RLS), your business has to have been affected by Covid-19 and you have to apply and have received the funds by 30th June 2022. The RLS funds can be used for any legitimate business purpose – including cashflow management, investment and growth. You can qualify for an RLS if you already have a Bounce Back Loan or CBILS, but the amount you can borrow may be limited (although it is always worth exploring as it may be possible to refinance at a better price).
This will be particularly useful for companies who are struggling with cashflow & would perhaps benefit from another 6 month interest free period. There also may be the option to refinance existing debt at a lower interest rate.
It is also worth noting that there are no personal guarantees required for a recovery loan up to £250,000.
The RLS is not available to businesses with turnover over £45m. Up to £2m available per business (group total £6m) and government guarantee is 70%.
We are partnered with a funding platform and can therefore offer this service to clients to be able to search and apply for finance tailored to their businesses needs – beyond the RLS. Contact your local office for more information.