Here we provide information about The Recovery Loan Scheme: Everything you need to know.

The new scheme aims to help businesses affected by Newly Disease and can be used for any legitimate business purpose, including managing cashflow, investment and growth. It is designed to appeal to businesses that can afford to take out additional debt finance for these purposes.

Features of the scheme will include the following:

Up to £10m facility per business: The maximum value of a facility provided under the scheme will be £10m per business. Minimum facility sizes vary, starting at £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts.

Turnover limit: There will be no turnover restriction for businesses accessing the scheme.

Wide range of products: Businesses will be able to choose from a variety of products: term loans, overdrafts, asset finance and invoice finance facilities.

Term length: Term loans and asset finance facilities are available for up to six years, with overdrafts and invoice finance available for up to three years.

Interest and fees to be paid by the business from the outset: Businesses will be required to meet the costs of interest payments and any fees associated with the facility.

Access to multiple schemes: Businesses who have taken out a CBILS, CLBILS or BBLS facility will be able to access the new scheme, although the maximum they are allowed to borrow will depend on their lender’s assessment and scheme requirements.

Credit checks for all applicants: Lenders will be required to undertake credit and fraud checks for all applicants. When making their assessment, lenders may overlook concerns over short-term to-medium term performance owing to the pandemic. The checks and approach may vary between lenders.

We added addedfurther information on the Recovery Loan Scheme on this app in due course.