The Recovery Loan Scheme (RLS) launched on 6 April 2021 to help Northern Ireland businesses access finance as they recover and grow following the Covid-19 pandemic. RLS effectively replaces the CBILS funding. The new RLS scheme aims to help businesses affected by coronavirus and can be used for business purposes, such as managing cash flow, investment and growth.
A key aim of the scheme is to improve the terms on offer to businesses. Businesses who have taken out a Coronavirus Business Interruption Loan Scheme (CBILS), Coronavirus Large Business Interruption Loan Scheme (CLBILS) or Bounce Back Loan Scheme (BBLS) facility are able to access the new scheme.
Extension of Recovery Loan Scheme
At Autumn Budget 2021 the Chancellor announced that the Recovery Loan Scheme will be extended by six months to 30 June 2022, having already seen total funding of over £1bn offered to businesses by the scheme’s diverse range of accredited partners.
Note It is important to note that if you are approved for a Recovery loan, you will be liable to pay the RLS interest payments and fees from the outset. The guarantee is to the lender and not to the business.
Am I eligible for a Recovery loan?
To receive a business loan under the Government’s Recovery Loan Scheme (RLS), you’ll need to meet the following criteria:
- Business has been impacted by coronavirus
- Minimum of 2 years’ trading history
- Must be a limited company or limited liability partnership (LLP)
- Business is trading in the UK
- Loan is for business purposes (i.e. working capital or investment, and to support trading in the UK)
If your business has been affected by the coronavirus pandemic and you’re looking for extra funding, the Recovery Loan Scheme (RLS) could be a good option for you.