Recovery Loan Scheme (RLS) Applications
In April 2020, the Government launched the Bounce Back Loans Scheme (BBLS), available for most business sectors in the UK, that have been affected by the National Lockdowns to assist with the COVID-19 Pandemic financial crisis.
Loan Amounts range from £ 5,000 to £ 50,000. This was supported under a Six Year repayment Plan, with a very low 2.5% Interest rate.
In April 2021, the Government launched the Recovery Loan Scheme (RLS), available to businesses that have taken previous BBLS and other Bank Loans into account. The lending Limit for Businesses is £ 10 Million which can be evaluated against Outstanding Invoices relating to Customer and Client Debts endured, during the current Pandemic.
Lenders will utilise a number credit checks, although Banks will vary their levels of accountability to support growth moving forward in the UK economy.
* From April 2021 the was available to Limited and PLC Companies only
**From October 2021 this has now been extended to Partnerships and Sole Trader businesses.
Green Cross Solutions will make the necessary calculations, provide an accurate Loan figure that will be guaranteed to be ‘Approved’ by your Business Bank and will assure that you receive the Funds required to continue trading and reinvest in your Business. All supporting paperwork including ‘Self-Assessment’ accounts will be supplied to the Bank as required.
The Recovery Loan Scheme (RLS) is Supported with a Clear Financial Plan for the next 18 Months, allowing your Business Bank to see that the funds will be used strategically and with careful planning to protect both the client, bank and the Government who are partially underwriting the scheme
This fully Guaranteed Green Cross Solutions Service, is Chargeable at 10% of the Total Loan Amount.
Recovery Loan Scheme (RLS) featuresFunding limits and range
Up to £10m facility per business:The maximum amount of a facility provided under the scheme is £10m per business (maximum £30m per group).
Minimum facility sizes vary, starting at £25,000 for term loans.Recovery Loan Scheme term lengthTerm loans are available for up to six years.Interest 6.06% to 7.66% and fees to be paid by the borrower from the outset:Businesses are required to meet the costs of interest payments and any fees associated with the RLS facility.Access to multiple Covid-19 schemesBusinesses that have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme although the amount they have borrowed under a previous scheme may in certain circumstances limit the amount they may borrow under the Recovery Loan Scheme.Personal GuaranteesPersonal guarantees are not permitted for facilities of £250,000 or less. Above £250,000 the maximum amount that can be covered under RLS is capped at a maximum of 20% of the outstanding balance of the RLS facility after the proceeds of business assets have been applied. No personal guarantees can be held over Principal Private Residences.Guarantee to the Lender up to £ 250,000The scheme provides the lender with a 100% Government backed guarantee against the outstanding balance of the facility
up to £ 250,000.
The borrower always remains 100% liable for the debt.Guarantee to the Lender from £ 251,000 to £ 10 MillionThe RLS scheme provides the lender with a 80% Government backed guarantee against the outstanding balance of the facility
from £ 251,000 to £ 10 Million.
The Borrow has to personally Guarantee 20% of the RLS Loan.The borrower always remains 100% liable for the debt.Eligibility CriteriaCovid-19 impact:The borrower must confirm to the lender that it has been impacted by Covid-19.UK based businesses onlyThe borrower must be carrying out trading activity in the UK.Viability testThe 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.Credit and fraud checks for all applicantsLenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lenders.Turnover limitThere is no turnover restriction for businesses accessing the schemeGreen Cross Solutions will require the following Information to assess and process the Recovery Loan Scheme (RLS) Application with a Suitable Approved Business Bank or UK Lender.
Applications for (RLS) are subject to credit and affordability checks.1. Address history for the past 3 years
2. The date your business started trading
3. Business turnover in the last 12 months
4. Projected turnover Cashflow and Business Plan for the next 12 to 18 months
5. Projected Business net profit for the last 12 to 18 months
6. Details of any existing Business Loans or Overdraft repayments
7. Details of any existing Personal Loans, Mortgages, Overdraft or Credit Card repayments8. Last 2 years Trading Accounts for Self Employed Partnerships and Sole Traders
9. Last 2 Years Financial Accounts for Limited Companies and PLC’s.
10. Business Plan to outline growth and expansion of the business and funding options.
The Following List of UK Banks and Finance Houses are on the List of Government Approved Lenders
visit the British Business Bank www.British-Business-Bank.co.uk
The approved List is updated on a weekly basis to share information regularly as new lenders become approved.
Examples of successful (BBLS) Bounce Back Loan Scheme clients and (RLS) Recovery Loan Scheme Clients.
Please see the Testimonial Page to read the full Recommendations and Testimonials.