The British Business Bank’s Recovery Loan Scheme (RLS) is due to end on Thursday 30th June 2022.
At the time of writing (30 May), there have been no formal announcements about any replacement, although there are murmerings of a watered down version coming in. Watch this space.
If you are contemplating an application for finance, please keep in mind the 30 June deadline. While the Recovery Loan Scheme is not suitable for every requirement, it is very flexible and has many benefits over other forms of commercial finance, including a 70% guarantee from the government and no directors' guarantees for loans under £250,000. This latter benefit is the one most likely to be diluted or lost altogether in any replacement scheme. You can find a full breakdown of the current scheme in our earlier blog about the recovery loan schemes compared.
All RLS facilities must be agreed by the lender on or before 30 June 2022 and the initial drawdown needs to occur within six months of the offer date. Some accredited lenders have already closed their doors to new applications.