Search Login Back to Arbuthnot Commercial Asset Based Lending Recovery Loan Scheme The Recovery Loan Scheme (RLS) 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 business purposes, including, managing cashflow, 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. The Scheme will run until 31 December 2021, subject to review. We aim to offer this service from the end of April. If you are a client of Arbuthnot Latham, please instead visit their page on RLS loans for more information. Scheme features include: 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 £1,000 for asset and invoice finance, and £25,001 for term loans and overdrafts. Term length Term loans and asset finance facilities are available from three months, for up to six years, with overdrafts and invoice finance available from three months, for up to three years. Interest 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 schemes 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. Personal Guarantees Personal 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 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. Eligibility Criteria Covid-19 impact The borrower must confirm to the lender that it has been impacted by Covid-19. UK-based The borrower must be carrying out trading activity in the UK. Viability test The 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 applicants Lenders will be required to undertake credit and fraud checks for all applicants. The checks and approach may vary between lenders. Priority Existing Arbuthnot Commercial ABL clients have priority to facilities, however new applicants may be considered. Turnover limit* There is no turnover restriction for businesses accessing the scheme. 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 How to apply If your business has been impacted and you meet the eligibility criteria, please email us at ABL@arbuthnot.co.uk to discuss how we can help you. You will need to provide certain documents when you apply for an RLS-backed facility. These are likely to include: Management accounts A business plan Historic accounts Details of assets Decision-making on whether a business is eligible for RLS is fully delegated to the British Business Bank’s accredited RLS lenders. *Arbuthnot Commercial ABL typically support clients with a turnover equal to or greater than £1m and /or borrowing requirements equal or greater than £1m. Your regional contacts James Marler Director, Business Development (London & South East) 07741 148364 JamesMarler@arbuthnot.co.uk Keith Rose Director, Business Development (Midlands and South West) 07973 912611 KeithRose@arbuthnot.co.uk Josh Thorneycroft Director, Business Development (Thames Valley & London) 07423 655 297 Joe Taviner Director, Business Development (North West) 07341 479 334 JoeTaviner@arbuthnot.co.uk Richard Ackers Director, Business Development (North East) 07741 162590 RichardAckers@arbuthnot.co.uk 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. 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 www.british-business-bank.co.uk/recovery-loan-scheme. For business. For family. For life. Contact Brochures and email subscriptions Careers FSCS Important information Complaints Cookies policy Terms of use Privacy notice Products & terms Security Statement Fraud awareness Arbuthnot Direct Follow us on social Copyright © 2021 Registered in England and Wales No. 819519. Arbuthnot Latham & Co., Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Arbuthnot Latham & Co., Limited is on the Financial Services Register under Firm Reference Number 143336. Contact Us Cookie Control Icon