Recovery Loan Scheme

Recovery Loan Scheme (RLS)

DSL is pleased to be an accredited lender of the British Business Bank to deliver the Recovery Loan Scheme to SMEs in Scotland.

The Recovery Loan Scheme (RLS) was launched on 6 April 2021 and supports access to finance for UK businesses as they recover and grow following the Covid-19 pandemic.

RLS aims to help businesses affected by Covid-19 and can be used for any business purpose, including working capital,  investment and growth. It is designed to support businesses that can afford to take out additional finance for these purposes. Businesses who have taken out a CBILS, CLBILS or BBLS facility are able to access the new scheme.

A key aim of the Recovery Loan Scheme is to improve the terms on offer to businesses, but if a lender can offer a business the choice of a commercial loan on better terms, without requiring the guarantee provided by the RLS, they must do so.

The Scheme will run until 31 December 2021, subject to review.

As an alternative finance provider, DSL will provide the  Recovery Loan Scheme with the following  features:

  • Loan amount: £25,001 to £75,000.
  • Loan term: 3 months to 5 years
  • Interest Rate: 9.95% fixed per annum
  • Loan Administration Fee: 2% of the total loan value payable in advance
  • Businesses 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 RLS.
  • Security: Where tangible security is available this may be sought. If a Limited Company then a Bond & Floating Charge will be taken. Any fees associated with taking security will require to be paid by the borrower. No personal guarantees will be sought – these are not permitted for loans under £250,000 granted under the Recovery Loan Scheme.
  • Guarantee to the Lender: The scheme provides the lender with a government-backed guarantee against the outstanding balance of the facility.
  • The borrower always remains 100% liable for the debt.
  • Covid-19 impact: The borrower must confirm that it has been impacted by Covid-19.
  • UK-based: The borrower must be carrying out trading activity in the UK.
  • Viability test: We 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 applicants: DSL requires to undertake credit and fraud checks for all applicants.
  • Turnover limit: There is no turnover restriction for businesses accessing the scheme.

Depending upon the legal status of your business, DSL requires the following documents to be submitted along with your RLS application form. Application packs are available at the bottom of this page.

Paperwork required from Sole Traders & Partnerships

  • Completed & Signed Application Form
  • Completed & Signed Personal Statement Form(s)
  • Completed Business Information Form
  • Minimum of 1 year’s financial projections (for further guidance see Checklist in the Application Pack)
  • The last 2 years certified accounts and your most recent management accounts (no more than 3 months old)
  • The last 3 months business bank statements
  • CV’s for all applicants
  • The last 3 months personal bank statements for all owners & partners
  • Proof of identification and home addresses should be included for all owners & partners (list of acceptable forms of identification is provided in the Checklist within your Application Pack).

 

Paperwork required from Ltd Companies & LLP’s

  • Completed & Signed Application Form
  • Completed Business Information Form
  • Minimum of 1 year’s financial projections (see guidance notes in the Checklist of your Application Pack)
  • The last 2 years certified accounts and your most recent management accounts (no more than 3 months old)
  • The last 3 months business bank statements
  • Completed & Signed Director/Shareholder Identify Verification Form(s) for all directors and shareholders (with 20% shares or more). 
  • Proof of identification and home addresses should be included for all owners & partners (see list of acceptable forms of identification in the Checklist of the Application Pack).

Please note, the following are not eligible under RLS:

  • Banks, Building Societies, Insurers and Reinsurers (excluding Insurance Brokers)
  • Public sector bodies.
  • State funded primary and secondary schools

Business Finance Support

The British Business Bank has a range of guidance and resources available to all businesses, including content on managing your cashflow and a list of independent advice services. For more information, visit : https://www.british-business-bank.co.uk/finance-hub/

The Recovery Loan Scheme is managed by the British Business Bank on behalf of, and with the financial backing of, the Secretary of State for Business, Energy & Industrial Strategy. British Business Bank plc is a development bank wholly owned by HM Government. It is not authorised or regulated by the PRA or the FCA. Visit http://www.british-business-bank.co.uk/recovery-loan-scheme

Download Your Application Pack

Example Loan Calculator

An example for Illustrative purposes:

Annual Interest Rate (fixed) is 9.95% p.a. (11.3% APR) based on borrowing £50,000 and repaying over 5 years in 60 monthly repayments of £1,061.12 each with total amount payable of £64,667.41.

The loan calculator is designed to help you work out what your total and monthly repayments will be, depending on the loan term and amount you choose. Under the Recovery Loan Scheme, we offer loans from £25,001 to £75,000 at a fixed interest rate of 9.95% per annum (11.3% APR) and you can choose a loan repayment term of up to five years. The APR remains the same for the loan amount and duration.

 

Get in touch to find out more.

All applicants are assigned a Loan Officer throughout the process and receive face-to-face, pre and post loan drawdown support. Our friendly team are here to advise and support you every step of the way.

CEIS

CEIS is the UK’s largest and most experienced social enterprise support agency. Established in 1984, CEIS has developed a series of training, support and investment programmes that have been widely adopted and replicated. Whether supporting or financing social enterprises, organising events or delivering innovative employability programmes to help people back into work, the staff at CEIS are driven to enable individuals, organisations and communities.

CEIS’s mission is to tackle inequality, strengthen communities and improve the performance and impact of businesses which contribute to our society. For more information, please visit their website.